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

You know that clean-functioning, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been wishing for but couldn’t afford? Well, you’re in luck! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was previously a financial impossibility may now be well within reach, whether for a new home you’re building in Des Moines or for the updating of your current home. You’ll want to act soon, though, because the federal tax credit amount is slated to drop 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. 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 regarded as having been “placed in service” when it’s totally installed and ready for use. But if your system is part of a newly built or newly renovated home, it’s considered “placed in service” at the time you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of solar energy cached underground for heating and cooling and, b) satisfies all ENERGY STAR requirements at the time of installation.
  • Covered expenditures take into consideration labor for onsite preparation, assembly, or original system installation and for the piping or wiring that tethers your geothermal system to your home.
  • There is no limit to the credit amount.

Need more details? WaterFurnace® has collected them for you in this useful circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Des Moines geothermal pros at Sherman Co. LLC will be glad to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!