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

You know that smooth-operating, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been wishing for but couldn’t afford? Well, look again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was heretofore a financial impossibility may now be well within reach, whether for a new home you’re building in Hattiesburg or for the improvement of your existing home. You’ll have to act quickly, though, because the federal tax credit amount has been set up to drop each year through 2021.

Here are the important facts:

  • A full 30% of the final 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. If, however, your system is part of a newly built or newly renovated home, it’s considered “placed in service” at the time you begin living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy accumulated in the ground 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 your geothermal system to your home.
  • There are no set limits to the credit amount.

Like more facts? WaterFurnace® has collected them for you in this brief but comprehensive circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Hattiesburg geothermal pros at BC's Heating and Air 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!