Manhattan Energy-Savers Celebrate:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-running, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been wanting but couldn’t afford? Well, check again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was heretofore a financial impossibility may now be well within reach, whether for a new home you’re building in Manhattan or for the updating of your current home. You’ll want to act swiftly, though, because the federal tax credit amount has been set up to shrink from year to year through 2021.

Here are the crucial facts:

  • A full 30% of the ultimate cost of your geothermal system is covered by this credit through 2019. In 2020, then, just 26% of the ultimate 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. A geothermal heating and cooling installation is typically considered to be “placed in service” when it’s fully installed and ready for use. But if your system is part of a new or newly renovated home, it’s regarded as “placed in service” the moment you start living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy accumulated underground for heating and cooling and, b) satisfies all ENERGY STAR requirements at the time of installation.
  • Covered expenditures take into account labor for onsite preparation, assembly, or original system installation and for the piping or wiring that hitches your geothermal system to your home.
  • There are no set limits to the credit amount.

Need more specifics? WaterFurnace® has collected them for you in this handy flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Manhattan geothermal pros at Carlson Heating & AC, LLC will be glad to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!