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

You know that smooth-operating, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been eying but couldn’t afford? Well, take heart! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was once a financial impossibility may now be well within reach, whether for a new home you’re building in Big Rapids or for the enhancement of your existing home. You’ll have to act fast, though, because the federal tax credit amount is slated to drop 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. Starting in 2020, then, only 26% of the total 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 beyond. “Placed in service” indicates that the installation of your geothermal heating and cooling system is completely done and the equipment is 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 take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy accumulated underground 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 connects your geothermal system to your home.
  • The credit amount is unlimited.

Want more specifics? WaterFurnace® has gathered them for you in this brief but comprehensive leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Big Rapids geothermal pros at Stratz Heating & Cooling, Inc. will be happy to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!