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

You know that smooth-operating, low-maintenance, incredibly energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, check again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was previously a financial impossibility may now be well within reach, whether for a new home you’re building in East Tennessee or for the enhancement of your existing home. You’ll have to act quickly, though, because the federal tax credit amount is scheduled to drop from year to year through 2021.

Here are the important facts:

  • A full 30% of the final cost of your geothermal system is covered by this credit through 2019. In 2020, then, just 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 beyond. A geothermal heating and cooling installation is typically regarded as having been “placed in service” when it’s completely installed and ready for use. If, however, your system is part of a new or newly renovated home, it’s deemed to be “placed in service” when you begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of solar energy cached in the ground for heating and cooling and, b) fulfills all ENERGY STAR requirements at the time of installation.
  • Covered expenditures take into consideration labor for onsite preparation, assembly, or original system installation and for the piping or wiring that secures your geothermal system to your home.
  • The credit amount is not limited.

Need more facts? WaterFurnace® has assembled them for you in this useful data sheet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your East Tennessee geothermal pros at Geo Pros of Knoxville will be pleased to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!