Oswego Energy-Savers Celebrate:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-operating, low-maintenance, incredibly energy-efficient geothermal heating and cooling system you’ve been eying but couldn’t afford? Well, check again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was once a financial impossibility may now be well within your means, be it for a new home you’re building in Oswego or for the enhancement of your present home. You’ll have to act soon, though, because the federal tax credit amount is slated to decrease each year through 2021.

Here are the salient facts:

  • A full 30% of the total 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. “Placed in service” means 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 regarded as “placed in service” the moment you start living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy cached in the earth for heating and cooling and, b) satisfies 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.
  • The credit amount is not limited.

Need more specifics? WaterFurnace® has collected them for you in this handy data sheet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Oswego geothermal pros at Nodines Heating Inc. 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!