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

You know that smooth-running, low-maintenance, incredibly 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 now back in effect! And what was once a financial impossibility may now be well within reach, whether for a new home you’re building in Knox County or for the upgrading of your current home. You’ll want to act right away, though, because the federal tax credit amount has been set up to shrink each year through 2021.

Here are the principle facts:

  • A full 30% of the total cost of your geothermal system is covered by this credit through 2019. Beginning 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 later. “Placed in service” indicates that the installation of your geothermal heating and cooling system is completely finished and the equipment is ready for use. That said, 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) employs solar energy stored in the ground for heating and cooling and, b) fulfills 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 hitches your geothermal system to your home.
  • There is no limit to the credit amount.

Want more facts? WaterFurnace® has gathered them for you in this useful bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Knox County geothermal pros at Cosby Heating and Cooling will be happy to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!