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

You know that smooth-functioning, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been eying but couldn’t afford? Well, you’re in luck! 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 means, whether for a new home you’re building in Long Island or for the improvement of your current home. You’ll want to act fast, though, because the federal tax credit amount has been set up to shrink from year to 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. In 2020, then, just 26% of the ultimate cost is covered. And in 2021, just 22%.
  • The federal geothermal tax credit can be applied retroactively to installations that are “placed in service” as of January 1, 2017, or beyond. A geothermal heating and cooling installation is normally regarded as having been “placed in service” when it’s totally 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 take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of solar energy stored underground for heating and cooling and, b) satisfies 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 is no limit to the credit amount.

Want more facts? WaterFurnace® has gathered them for you in this brief but comprehensive circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Long Island geothermal pros at ZBF Geothermal will be happy to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!