Alaska 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 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 unattainable may now be well within reach, whether for a new home you’re building in Alaska or for the enhancement of your current home. You’ll have to act fast, though, because the federal tax credit amount is slated to decrease from year to year through 2021.

Here are the principle facts:

  • A full 30% of the total 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 new 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 stored 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 your geothermal system to your home.
  • The credit amount is not limited.

Like more specifics? WaterFurnace® has assembled them for you in this convenient flier, Understanding the Federal Tax Incentives for Geothermal Heat Pumps. And, of course, 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!