Western Montana Energy-Savers Rejoice:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-functioning, low-maintenance, incredibly energy-efficient geothermal heating and cooling system you’ve been longing for 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 heretofore unattainable may now be well within reach, whether for a new home you’re building in Western Montana or for the updating of your current home. You’ll have to act swiftly, though, because the federal tax credit amount has been set up to drop from year to year through 2021.

Here are the central facts:

  • A full 30% of the ultimate cost of your geothermal system is covered by this credit through 2019. Starting in 2020, then, only 26% of the ultimate 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 later. A geothermal heating and cooling installation is usually regarded as having been “placed in service” when it’s fully installed and ready for use. If, however, your system is part of a just built or just 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) employs solar energy cached underground for heating and cooling and, b) fulfills all ENERGY STAR requirements at the time of installation.
  • Covered expenditures take into account 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 unlimited.

Need more specifics? WaterFurnace® has gathered them for you in this nifty flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Western Montana geothermal pros at Ground Source Systems, Inc. will be glad to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!