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

You know that smooth-running, low-maintenance, remarkably energy-efficient geothermal heating and cooling system you’ve been wishing for 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 once a financial impossibility may now be well within reach, be it for a new home you’re building in Pittsburgh or for the enhancement of your present home. You’ll need to act fast, though, because the federal tax credit amount has been set up to decrease each year through 2021.

Here are the principle 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 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 considered to be “placed in service” when it’s fully installed and ready for use. If, however, your system is part of a newly built or newly renovated home, it’s regarded as “placed in service” the moment you begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy cached underground for heating and cooling and, b) fulfills 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 connects your geothermal system to your home.
  • There is no limit to the credit amount.

Like more specifics? WaterFurnace® has assembled them for you in this handy flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Pittsburgh geothermal pros at E & D Company HVAC LLC will be happy to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!