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

You know that clean-running, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been wanting but couldn’t afford? Well, take heart! 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 reach, be it for a new home you’re building in Richmond or for the improvement of your existing home. You’ll need to act right away, though, because the federal tax credit amount is scheduled to decrease from year to year through 2021.

Here are the pivotal 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 thereafter. A geothermal heating and cooling installation is generally considered to be “placed in service” when it’s fully installed and ready for use. If, however, your system is part of a newly built 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) employs solar energy stored underground for heating and cooling and, b) fulfills 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 your geothermal system to your home.
  • There are no set limits to the credit amount.

Like more details? WaterFurnace® has gathered them for you in this handy circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Richmond geothermal pros at DeltaTemp will be pleased to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!