Central New Jersey Energy-Savers Take Note:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-functioning, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been eying but couldn’t afford? Well, take heart! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was previously unattainable may now be well within reach, be it for a new home you’re building in Central New Jersey or for the enhancement of your current home. You’ll have to act fast, though, because the federal tax credit amount has been set up to drop 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. In 2020, then, just 26% of the total 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. “Placed in service” indicates that the installation of your geothermal heating and cooling system is completely done and the equipment is ready for use. That said, 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) employs solar energy cached in the ground 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 your geothermal system to your home.
  • The credit amount is not limited.

Need more facts? WaterFurnace® has gathered them for you in this nifty circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Central New Jersey geothermal pros at CMS Geothermal will be more than happy to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!