In February 2018, the 30% tax credit was reinstated through 2019 and can be retroactively applied to installations placed in service on January 1, 2017 or later. Geothermal equipment that uses the stored solar energy from the ground for heating and cooling and that meets ENERGY STAR requirements at the time of installation is eligible for the tax credit. The credit has no limit and there’s no limitation on the number of times the credit can be claimed.
US Tax Credits Through 2021
The energy tax credit can be combined with solar and wind credits as well as energy efficiency upgrade credits. To save the most on your installation, you’ll want to act quickly – the 30% credit is available through the end of 2019, but it’s set to decrease each year through 2021. The credit amount drops to 26% in 2020 and down to 22% in 2021.
Even without incentives, installing a geo system just makes sense. It’s the only type of system that will pay you back. Most homeowners save more on monthly bills than they pay for the system when installation costs are financed. Any added investment over traditional equipment is usually recovered in just a few years, and many homeowners see a return on investment of 10-20% over the life of the system.