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

You know that clean-operating, low-maintenance, remarkably energy-efficient geothermal heating and cooling system you’ve been eying 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 once unattainable may now be well within reach, whether for a new home you’re building in Starkville or for the improvement of your current home. You’ll need to act quickly, 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. 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 thereafter. A geothermal heating and cooling installation is typically considered to be “placed in service” when it’s fully installed and ready for use. If, however, your system is part of a just built or just renovated home, it’s regarded as “placed in service” at the time you start living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy accumulated in the earth for heating and cooling and, b) meets 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 are no set limits to the credit amount.

Like more facts? WaterFurnace® has assembled them for you in this brief but comprehensive flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Starkville geothermal pros at Mid South Air Conditioning, Inc. will be more than happy to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!