Central Virginia Energy-Savers Take Note:
30% Federal Geothermal Tax Credit Reinstated!

You know that smooth-running, low-maintenance, incredibly energy-efficient geothermal heating and cooling system you’ve been wishing for but couldn’t afford? Well, you’re in luck! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was previously unaffordable may now be well within your grasp, be it for a new home you’re building in Central Virginia or for the enhancement of your present home. You’ll need to act right away, though, because the federal tax credit amount has been set up to drop 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. Beginning 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 thereafter. A geothermal heating and cooling installation is normally considered to be “placed in service” when it’s fully installed and 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 begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of solar energy cached underground for heating and cooling and, b) meets 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 is no limit to the credit amount.

Need more specifics? WaterFurnace® has collected them for you in this nifty data sheet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Central Virginia geothermal pros at Scott Horseman Heating & Air Conditioning Inc. 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!