Knoxville Energy-Savers Rejoice:
30% Federal Geothermal Tax Credit Reinstated!

You know that smooth-operating, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been wishing for but couldn’t afford? Well, take heart! Because, as of February 2018, the federal government’s 30% geothermal tax credit is reinstated! And what was once unaffordable may now be well within your grasp, be it for a new home you’re building in Knoxville or for the enhancement of your current home. You’ll need to act right away, 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 ultimate 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, only 22%.
  • The federal geothermal tax credit can be applied retroactively to installations that are “placed in service” as of January 1, 2017, or later. “Placed in service” indicates that the installation of your geothermal heating and cooling system is complete and the equipment is ready for use. That said, your system is part of a just built or just renovated home, it’s considered to be “placed in service” at the time you start living in the home.
  • 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) 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.
  • The credit amount is unlimited.

Like more details? WaterFurnace® has gathered them for you in this useful bulletin, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Knoxville geothermal pros at Pioneer Heating and Air Conditioning, Inc. will be more than happy to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably!