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

You know that smooth-running, low-maintenance, amazingly energy-efficient geothermal heating and cooling system you’ve been dreaming about but couldn’t afford? Well, check again! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was heretofore a financial impossibility may now be well within your means, whether for a new home you’re building in New Jersey or for the improvement of your existing home. You’ll want to act right away, though, because the federal tax credit amount has been set up to decrease from year to year through 2021.

Here are the important facts:

  • A full 30% of the ultimate cost of your geothermal system is covered by this credit through 2019. Beginning in 2020, then, only 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 beyond. “Placed in service” means that the installation of your geothermal heating and cooling system is completely finished and the equipment is ready for use. But if your system is part of a recently built or renovated home, it’s considered “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 in the earth for heating and cooling and, b) fulfills all ENERGY STAR requirements at the time of installation.
  • Covered expenditures include labor for onsite preparation, assembly, or original system installation and for the piping or wiring that links your geothermal system to your home.
  • The credit amount is unlimited.

Like more specifics? WaterFurnace® has assembled them for you in this handy circular, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your New Jersey geothermal pros at Energy Smarts Mechanical will be glad to answer any questions you have about this exciting new opportunity to put geothermal heating and cooling to work for you – affordably!