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

You know that smooth-functioning, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been dreaming about 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 Pensacola or for the improvement of your present home. You’ll need to act soon, though, because the federal tax credit amount has been set up to decrease from year to year through 2021.

Here are the principle facts:

  • A full 30% of the total cost of your geothermal system is covered by this credit through 2019. In 2020, then, only 26% of the total cost is covered. And in 2021, just 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” means that the installation of your geothermal heating and cooling system is complete and the equipment is ready for use. If, however, your system is part of a newly built or newly renovated home, it’s regarded as “placed in service” the moment you begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy cached in the ground for heating and cooling and, b) meets 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 links your geothermal system to your home.
  • There are no set limits to the credit amount.

Want more details? WaterFurnace® has collected them for you in this convenient bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Pensacola geothermal pros at Energy Systems will be more than happy to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!