Ebensburg 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 eying but couldn’t afford? Well, despair not! 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 your means, be it for a new home you’re building in Ebensburg or for the updating of your current home. You’ll want to act fast, though, because the federal tax credit amount is slated to shrink each year through 2021.

Here are the salient 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 beyond. “Placed in service” indicates that the installation of your geothermal heating and cooling system is completely done and the equipment is ready for use. But if your system is part of a new or newly renovated home, it’s considered “placed in service” at the time you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy stored in the earth 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.
  • The credit amount is unlimited.

Need more specifics? WaterFurnace® has assembled them for you in this useful circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Ebensburg geothermal pros at Kupetz's Plumbing & Heating will be glad to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!