Wilmington Energy-Savers Rejoice:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-functioning, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, you’re in luck! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was previously unaffordable may now be well within reach, be it for a new home you’re building in Wilmington or for the updating of your existing home. You’ll want to act soon, though, because the federal tax credit amount has been set up to shrink each 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. Starting in 2020, then, just 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 beyond. A geothermal heating and cooling installation is usually considered to be “placed in service” when it’s fully installed and ready for use. If, however, your system is part of a recently built or renovated home, it’s considered 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 stored 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 secures your geothermal system to your home.
  • The credit amount is unlimited.

Need more facts? WaterFurnace® has collected them for you in this convenient leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Wilmington geothermal pros at O'Brien Service Company 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!