Kitsap County Energy-Savers Rejoice:
30% Federal Geothermal Tax Credit Reinstated!

You know that smooth-functioning, low-maintenance, remarkably energy-efficient geothermal heating and cooling system you’ve been dreaming about 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 unaffordable may now be well within your grasp, be it for a new home you’re building in Kitsap County or for the upgrading of your current home. You’ll need to act right away, though, because the federal tax credit amount has been set up to shrink each year through 2021.

Here are the salient facts:

  • A full 30% of the total cost of your geothermal system is covered by this credit through 2019. Beginning 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. “Placed in service” means that the installation of your geothermal heating and cooling system is complete and the equipment is ready for use. But if your system is part of a newly built or newly renovated home, it’s regarded as “placed in service” the moment you take up residence.
  • 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) satisfies 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 connects your geothermal system to your home.
  • The credit amount is unlimited.

Need more details? WaterFurnace® has gathered them for you in this brief but comprehensive bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Kitsap County geothermal pros at Thermal Systems will be happy to answer any questions you have about this thrilling new opportunity to put geothermal heating and cooling to work for you – affordably!