Geothermal is so good for the environment the government will pay you to purchase a geothermal unit, but the savings are about to run out! Right now, there is a 30% geothermal tax credit back if you get a geothermal unit. However, that is reducing to 26% at the end of 2019. That can be a significant reduction in savings on something like a geothermal system.
What Qualifies For Tax Credits?
Any geothermal equipment that uses the stored solar energy from the ground for heating and cooling that meets energy star requirements at the time of installation is eligible for a tax credit. This credit began in 2018, but you can apply it to any unit installed as early as January 1, 2017.
It’s important to point out that all of ECS Geothermal’s equipment meets these requirements. If you install with us, you don’t need to worry about qualifying. That’s one of the many reasons we are Kansas City’s largest geothermal contractor.
How Else Can I Save?
Tax credits are not the only way to save money on your installs. Many counties, including KC P&L, will give you a lower price on your electricity per kWh (kilowatt-hour). Not only will you save on taxes, but you will save a certain percentage of your electric costs.
In fact, if you want to find out what your local incentives are, you can check out this database here! It has excellent information on what your local county/city may offer you to install an eco-friendly geothermal heating & cooling system.
Help Extend The Tax Credit Through 2024!
We did a blog on this previously, but it’s worth mentioning again! In July, a bill was introduced to the House and Senate to push for a five-year extension of the 30% tax credit for Geothermal systems. This would mean a 30% tax credit through 2024, a 26% tax credit in 2025, and a 22% tax credit in 2026.
The bill has been introduced as the Renewable Energy Extension Act Of 2019. In fact, this bill is an extension of the Solar Investment Tax Credits (ITC), so there is more to it than just geothermal incentives. For this reason, this bill is about more than just geothermal incentives. Please show your support by reaching out to your local congressmen!
Ready To Take Advantage of Your Tax Savings?
If you’re ready to act now & take advantage of these massive geothermal tax credit savings, please feel free to give us a call or submit a contact form. We’ll help you help the environment and your wallet today!