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

You know that clean-operating, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been wanting but couldn’t afford? Well, check again! 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 grasp, be it for a new home you’re building in The Hudson Valley or for the updating of your present home. You’ll want 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, 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 generally regarded as having been “placed in service” when it’s totally installed and ready for use. But if your system is part of a recently built or renovated home, it’s deemed to be “placed in service” when you begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses solar energy cached 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.
  • There are no set limits to the credit amount.

Want more details? Your The Hudson Valley geothermal pros at Verdae Geothermal will be pleased to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!

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