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

You know that smooth-running, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, despair not! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was previously unattainable may now be well within your grasp, be it for a new home you’re building in Green Bay or for the updating of your existing home. You’ll have to act fast, though, because the federal tax credit amount has been set up to shrink each year through 2021.

Here are the important facts:

  • A full 30% of the final cost of your geothermal system is covered by this credit through 2019. In 2020, then, just 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 thereafter. A geothermal heating and cooling installation is normally regarded as having been “placed in service” when it’s completely installed and ready for use. That said, your system is part of a new or newly renovated home, it’s considered to be “placed in service” at the time you begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy accumulated in the ground for heating and cooling and, b) fulfills all ENERGY STAR requirements at the time of installation.
  • Covered expenditures include labor for onsite preparation, assembly, or original system installation and for the piping or wiring that tethers your geothermal system to your home.
  • There are no set limits to the credit amount.

Want more specifics? WaterFurnace® has assembled them for you in this handy circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Green Bay geothermal pros at Action Heating & Cooling Services, LLC will be pleased to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!