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

You know that clean-functioning, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been wanting but couldn’t afford? Well, take heart! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was once unaffordable may now be well within your grasp, be it for a new home you’re building in West Chester or for the upgrading of your existing home. You’ll need 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 final 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, 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. “Placed in service” means that the installation of your geothermal heating and cooling system is completely finished and the equipment is ready for use. But if your system is part of a recently built or renovated home, it’s regarded as “placed in service” the moment you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of solar energy cached underground for heating and cooling and, b) fulfills all ENERGY STAR requirements at the time of installation.
  • Covered expenditures encompass labor for onsite preparation, assembly, or original system installation and for the piping or wiring that your geothermal system to your home.
  • The credit amount is not limited.

Want more specifics? WaterFurnace® has gathered them for you in this brief but comprehensive bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your West Chester geothermal pros at Brandywine Valley Heating & Air Conditioning will be pleased to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!