Olive Branch Energy-Savers Take Note:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-operating, low-maintenance, highly energy-efficient geothermal heating and cooling system you’ve been dreaming about 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 once unaffordable may now be well within your means, be it for a new home you’re building in Olive Branch or for the enhancement 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. Beginning in 2020, then, just 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. A geothermal heating and cooling installation is normally considered to be “placed in service” when it’s fully installed and ready for use. That said, 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 accumulated underground for heating and cooling and, b) fulfills 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 tethers your geothermal system to your home.
  • The credit amount is unlimited.

Want more specifics? Your Olive Branch geothermal pros at Air & Heat Service Co. will be more than happy to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!

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