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

You know that smooth-running, low-maintenance, remarkably 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 now back in effect! And what was previously a financial impossibility may now be well within reach, whether for a new home you’re building in Alaska or for the enhancement of your present home. You’ll have to act right away, though, because the federal tax credit amount is slated to drop 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. Beginning 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 later. “Placed in service” indicates that the installation of your geothermal heating and cooling system is complete and the equipment is ready for use. If, however, your system is part of a just built or just renovated home, it’s considered “placed in service” the moment you start living in the home.
  • What’s eligible for the tax credit is geothermal equipment that, a) uses 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 consideration labor for onsite preparation, assembly, or original system installation and for the piping or wiring that your geothermal system to your home.
  • There are no set limits to the credit amount.

Want more details? Your Alaska geothermal pros at Energy Efficiency Associates will be happy 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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