New Haven County Energy-Savers Celebrate:
30% Federal Geothermal Tax Credit Reinstated!

You know that smooth-running, low-maintenance, wonderfully 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 a financial impossibility may now be well within reach, whether for a new home you’re building in New Haven County or for the updating of your present home. You’ll have to act soon, though, because the federal tax credit amount has been set up to drop each 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. “Placed in service” indicates that the installation of your geothermal heating and cooling system is completely finished and the equipment is 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 start 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) 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 is no limit to the credit amount.

Want more facts? WaterFurnace® has gathered them for you in this useful flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your New Haven County geothermal pros at Nero Air Conditioning and Heating 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!