Greater Cincinnati Energy-Savers Take Note:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-operating, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, look again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was once unaffordable may now be well within your grasp, be it for a new home you’re building in Greater Cincinnati or for the updating of your present 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 total 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. “Placed in service” means that the installation of your geothermal heating and cooling system is completely done and the equipment is ready for use. If, however, your system is part of a recently built or renovated home, it’s considered to be “placed in service” at the time you begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of solar energy stored 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 links your geothermal system to your home.
  • There is no limit to the credit amount.

Like more specifics? WaterFurnace® has collected them for you in this brief but comprehensive flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Greater Cincinnati geothermal pros at Bill Spade Electric, Heating & Cooling 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!