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

You know that smooth-functioning, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been wishing for but couldn’t afford? Well, check again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was previously unattainable may now be well within reach, whether for a new home you’re building in Lexington or for the upgrading of your existing home. You’ll have to act right away, though, because the federal tax credit amount has been set up to shrink from year to 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, 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. A geothermal heating and cooling installation is normally regarded as having been “placed in service” when it’s totally installed and ready for use. That said, your system is part of a newly built or newly renovated home, it’s deemed to be “placed in service” when you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of solar energy accumulated underground for heating and cooling and, b) satisfies 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 hitches your geothermal system to your home.
  • There is no limit to the credit amount.

Want more facts? WaterFurnace® has gathered them for you in this nifty flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Lexington geothermal pros at Arronco Comfort Air, Inc. will be more than happy to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!