Central Minnesota Energy-Savers Take Note:
30% Federal Geothermal Tax Credit Reinstated!

You know that smooth-running, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been longing for but couldn’t afford? Well, check again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was once unaffordable may now be well within your grasp, be it for a new home you’re building in Central Minnesota or for the improvement of your existing home. You’ll need to act right away, though, because the federal tax credit amount is slated to decrease each year through 2021.

Here are the important 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 thereafter. A geothermal heating and cooling installation is usually figured to be “placed in service” when it’s totally installed and ready for use. If, however, 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 accumulated 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 tethers your geothermal system to your home.
  • The credit amount is not limited.

Need more specifics? WaterFurnace® has gathered them for you in this brief but comprehensive data sheet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Central Minnesota geothermal pros at Geothermal Concept will be glad to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!