Manhattan Energy-Savers Celebrate:
30% Federal Geothermal Tax Credit Reinstated!

You know that clean-operating, low-maintenance, remarkably energy-efficient geothermal heating and cooling system you’ve been wishing for 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 unattainable may now be well within reach, whether for a new home you’re building in Manhattan or for the improvement of your current home. You’ll want to act soon, though, because the federal tax credit amount is scheduled to shrink from year to year through 2021.

Here are the critical facts:

  • A full 30% of the final cost of your geothermal system is covered by this credit through 2019. Starting in 2020, then, just 26% of the total 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 completely installed and ready for use. But if your system is part of a just built or just 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) employs solar energy accumulated in the ground for heating and cooling and, b) satisfies all ENERGY STAR requirements at the time of installation.
  • Covered expenditures take into account labor for onsite preparation, assembly, or original system installation and for the piping or wiring that hitches your geothermal system to your home.
  • There are no set limits to the credit amount.

Need more specifics? Your Manhattan geothermal pros at Carlson Heating & AC, LLC will be glad to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!

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