Green Bay Energy-Savers Take Note:
30% Federal Geothermal Tax Credit Reinstated!

You know that smooth-running, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been wanting 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 reach, whether for a new home you’re building in Green Bay or for the upgrading of your present home. You’ll have to act fast, though, because the federal tax credit amount has been set up to shrink each year through 2021.

Here are the principle 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 total 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 later. A geothermal heating and cooling installation is generally figured to be “placed in service” when it’s fully installed and ready for use. If, however, your system is part of a new 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) employs solar energy cached underground for heating and cooling and, b) satisfies 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 tethers your geothermal system to your home.
  • There are no set limits to the credit amount.

Need more facts? WaterFurnace® has collected them for you in this brief but comprehensive circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Green Bay geothermal pros at Van's Refrigeration will be pleased to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!