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

You know that clean-functioning, low-maintenance, incredibly energy-efficient geothermal heating and cooling system you’ve been wanting but couldn’t afford? Well, check 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 Salem or for the updating of your present home. You’ll have to act fast, though, because the federal tax credit amount has been set up to shrink each 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 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 beyond. A geothermal heating and cooling installation is usually considered to be “placed in service” when it’s completely installed and ready for use. But if your system is part of a newly built or newly renovated home, it’s regarded as “placed in service” when you begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy cached in the ground 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 specifics? Your Salem geothermal pros at Mill Creek Heating will be pleased to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!

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