Las Cruces Energy-Savers Take Note:30% Federal Geothermal Tax Credit Reinstated! April 06, 2018 You know that clean-running, low-maintenance, wonderfully energy-efficient geothermal heating and cooling system you’ve been dreaming about 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 once a financial impossibility may now be well within your means, whether for a new home you’re building in Las Cruces or for the enhancement of your existing home. You’ll need to act right away, though, because the federal tax credit amount is scheduled to drop each year through 2021. Here are the salient 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 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 thereafter. “Placed in service” indicates 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 regarded as “placed in service” when you begin living in the home. What’s eligible for the tax credit is geothermal equipment that, a) employs solar energy accumulated underground for heating and cooling and, b) satisfies 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 hitches your geothermal system to your home. There are no set limits to the credit amount. This credit can be combined with other tax credits and incentives also, including those for solar, wind, and energy-efficiency upgrades. Want more facts? Your Las Cruces geothermal pros at Sun City Plumbing & Heating will be glad to answer any questions you have about this generous new opportunity to put geothermal heating and cooling to work for you – affordably! Back To News