The Hudson Valley Energy-Savers Take Note:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-running, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been wanting but couldn’t afford? Well, take heart! 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 your means, be it for a new home you’re building in The Hudson Valley or for the updating of your current home. You’ll need to act right away, though, because the federal tax credit amount has been set up to decrease each year through 2021.

Here are the important facts:

  • A full 30% of the total cost of your geothermal system is covered by this credit through 2019. In 2020, then, just 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” means that the installation of your geothermal heating and cooling system is completely finished and the equipment is ready for use. But if your system is part of a recently built or renovated home, it’s considered to be “placed in service” at the time you begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy stored in the earth for heating and cooling and, b) meets all ENERGY STAR requirements at the time of installation.
  • Covered expenditures encompass labor for onsite preparation, assembly, or original system installation and for the piping or wiring that links your geothermal system to your home.
  • The credit amount is not limited.

Like more specifics? WaterFurnace® has assembled them for you in this convenient leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your The Hudson Valley geothermal pros at Verdae Geothermal will be more than happy to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!