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

You know that clean-functioning, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, despair not! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was heretofore a financial impossibility may now be well within your grasp, whether for a new home you’re building in Dallas or for the updating of your current home. You’ll want to act swiftly, though, because the federal tax credit amount has been set up to decrease each year through 2021.

Here are the important facts:

  • A full 30% of the final cost of your geothermal system is covered by this credit through 2019. In 2020, then, just 26% of the ultimate 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 normally 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 deemed to be “placed in service” the moment you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy stored in the ground for heating and cooling and, b) meets 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 not limited.

Need more details? WaterFurnace® has gathered them for you in this handy flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Dallas geothermal pros at Geo-Thermal Distribution Co., LLC will be pleased to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!