Tennessee Valley Energy-Savers Take Note:
30% Federal Geothermal Tax Credit Reinstated!

You know that smooth-operating, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, you’re in luck! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was previously unattainable may now be well within your grasp, be it for a new home you’re building in Tennessee Valley or for the improvement of your present home. You’ll have to act swiftly, though, because the federal tax credit amount has been set up to drop from year to year through 2021.

Here are the principle facts:

  • A full 30% of the final cost of your geothermal system is covered by this credit through 2019. In 2020, then, only 26% of the total cost is covered. And in 2021, only 22%.
  • The federal geothermal tax credit can be applied retroactively to installations that are “placed in service” as of January 1, 2017, or later. “Placed in service” indicates that the installation of your geothermal heating and cooling system is completely done and the equipment is ready for use. If, however, your system is part of a new or newly renovated home, it’s deemed to be “placed in service” when you start living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy accumulated in the earth for heating and cooling and, b) satisfies all ENERGY STAR requirements at the time of installation.
  • Covered expenditures encompass labor for onsite preparation, assembly, or original system installation and for the piping or wiring that connects your geothermal system to your home.
  • There is no limit to the credit amount.

Like more facts? WaterFurnace® has collected them for you in this handy data sheet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Tennessee Valley geothermal pros at Southern Solar Systems will be happy to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!