Central New Jersey Energy-Savers Celebrate:
30% Federal Geothermal Tax Credit Reinstated!

You know that smooth-functioning, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been eying but couldn’t afford? Well, look again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was previously unaffordable may now be well within your grasp, be it for a new home you’re building in Central New Jersey or for the updating of your existing home. You’ll have to act quickly, though, because the federal tax credit amount has been set up to decrease from year to year through 2021.

Here are the salient 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, 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. A geothermal heating and cooling installation is usually considered to be “placed in service” when it’s fully installed and ready for use. But if your system is part of a new or newly renovated home, it’s deemed to be “placed in service” when 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) satisfies 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.
  • There are no set limits to the credit amount.

Want 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 Central New Jersey geothermal pros at ABLEnvironmental will be pleased to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!