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

You know that clean-operating, low-maintenance, amazingly 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 reach, be it for a new home you’re building in Indianapolis or for the upgrading of your current home. You’ll need to act right away, though, because the federal tax credit amount has been set up to drop each year through 2021.

Here are the principle facts:

  • A full 30% of the total cost of your geothermal system is covered by this credit through 2019. Beginning in 2020, then, only 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 generally considered to be “placed in service” when it’s fully installed and ready for use. But if your system is part of a newly built 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) uses solar energy cached underground for heating and cooling and, b) satisfies 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.

Need more facts? WaterFurnace® has gathered them for you in this handy circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Indianapolis geothermal pros at Bassett Services Inc. will be glad to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!