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

You know that smooth-functioning, low-maintenance, remarkably energy-efficient geothermal heating and cooling system you’ve been longing for but couldn’t afford? Well, take heart! Because, as of February 2018, the federal government’s 30% geothermal tax credit is back again! And what was previously a financial impossibility may now be well within your means, be it for a new home you’re building in Panama City or for the upgrading of your current home. You’ll want to act fast, though, because the federal tax credit amount has been set up to decrease from year to year through 2021.

Here are the principle 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, just 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” indicates that the installation of your geothermal heating and cooling system is completely done and the equipment is ready for use. That said, your system is part of a newly built or newly 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) uses solar energy cached underground for heating and cooling and, b) satisfies 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 links your geothermal system to your home.
  • There is no limit to the credit amount.

Like more specifics? WaterFurnace® has collected them for you in this nifty leaflet, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, your Panama City geothermal pros at Ridge Heating and Air will be pleased to answer any questions you have about this wonderful new opportunity to put geothermal heating and cooling to work for you – affordably!