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

You know that smooth-operating, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been longing for but couldn’t afford? Well, look again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was once a financial impossibility may now be well within reach, whether for a new home you’re building in WISCONSIN-MINNESOTA or for the improvement of your current home. You’ll want to act fast, though, because the federal tax credit amount is slated to decrease each year through 2021.

Here are the pivotal facts:

  • A full 30% of the ultimate 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, 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. “Placed in service” means that the installation of your geothermal heating and cooling system is completely done and the equipment is ready for use. But if 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) uses solar energy accumulated in the ground for heating and cooling and, b) meets all ENERGY STAR requirements at the time of installation.
  • Covered expenditures take into account 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.

Want more specifics? WaterFurnace® has assembled them for you in this convenient bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your WISCONSIN-MINNESOTA geothermal pros at Comfort By Design, Inc. will be pleased to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!