Boise Energy-Savers Celebrate:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-operating, low-maintenance, remarkably energy-efficient geothermal heating and cooling system you’ve been wishing for but couldn’t afford? Well, you’re in luck! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was heretofore unaffordable may now be well within your grasp, be it for a new home you’re building in Boise or for the enhancement of your existing home. You’ll need to act right away, though, because the federal tax credit amount has been set up to decrease from year to year through 2021.

Here are the essential 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 total 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” indicates 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 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 accumulated underground 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 is no limit to the credit amount.

Like more details? WaterFurnace® has gathered them for you in this useful leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Boise geothermal pros at Idaho Geothermal, LLC will be glad to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!