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

You know that smooth-running, low-maintenance, incredibly energy-efficient geothermal heating and cooling system you’ve been longing for but couldn’t afford? Well, look again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was previously unaffordable may now be well within your means, whether for a new home you’re building in Utah or for the improvement of your current home. You’ll have to act fast, though, because the federal tax credit amount is scheduled to shrink 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. Starting 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 thereafter. 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 regarded as “placed in service” the moment you start living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of 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 tethers your geothermal system to your home.
  • The credit amount is unlimited.

Need more specifics? WaterFurnace® has assembled them for you in this nifty circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Utah geothermal pros at Utah Geothermal will be pleased to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!