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

You know that smooth-running, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, despair not! Because, as of February 2018, the federal government’s 30% geothermal tax credit is now back in effect! And what was once a financial impossibility may now be well within your grasp, whether for a new home you’re building in San Antonio or for the updating of your current home. You’ll have to act right away, though, because the federal tax credit amount has been set up to drop from year to year through 2021.

Here are the salient facts:

  • A full 30% of the final cost of your geothermal system is covered by this credit through 2019. In 2020, then, only 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 thereafter. A geothermal heating and cooling installation is typically figured to be “placed in service” when it’s completely installed and ready for use. But if your system is part of a just built or just renovated home, it’s deemed to be “placed in service” at the time you take up residence.
  • What’s eligible for the tax credit is geothermal equipment that, a) makes use of solar energy cached in the ground for heating and cooling and, b) meets all ENERGY STAR requirements at the time of installation.
  • Covered expenditures take into consideration 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 unlimited.

Need more details? WaterFurnace® has collected them for you in this useful leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your San Antonio geothermal pros at Southwest Mechanical Services 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!