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

You know that clean-running, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been eying but couldn’t afford? Well, take heart! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was previously unaffordable may now be well within reach, whether for a new home you’re building in Columbus or for the enhancement of your existing home. You’ll have to act soon, though, because the federal tax credit amount has been set up to decrease from year to 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 completely installed and ready for use. That said, your system is part of a just built or just 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 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 tethers 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 brief but comprehensive leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Columbus geothermal pros at Hottinger Geothermal will be happy to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!