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

You know that clean-functioning, low-maintenance, incredibly energy-efficient geothermal heating and cooling system you’ve been eying but couldn’t afford? Well, look again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was heretofore unaffordable may now be well within reach, be it for a new home you’re building in Cape Cod or for the improvement of your present home. You’ll have to act quickly, though, because the federal tax credit amount has been set up to decrease each 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. Starting 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 later. A geothermal heating and cooling installation is typically 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 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 stored in the earth for heating and cooling and, b) fulfills 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 connects your geothermal system to your home.
  • There are no set limits to the credit amount.

Want more specifics? WaterFurnace® has assembled them for you in this nifty bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Cape Cod geothermal pros at Atlantic Well Drilling 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!