Geothermal Tax Incentives Extended
For years, the US government has incentivized geothermal heat pump installations with a Federal tax credit. This current 30% credit was set to expire on 31 December 2020. The total credit would not completely be eliminated in 2021, but it was going to be significantly decreased.
Fortunately, Congress, in all its benevolent wisdom, chose to increase the 2021 credit up to 26%, and carry that credit forward through to 2022. The credit will only drop down to 22% in 2023. It will, unless amended, completely expire on 1 January 2024.
Which means there is still plenty of time for you to get significant savings on your purchase of a MRCOOL GeoCool geothermal heat pump residential heating and cooling system.
A geothermal heat pump like our GeoCool line of systems is simply the most energy efficient way to heat, cool, and dehumidify a modern home. Unlike traditional air-source heat pumps, a geothermal-source unit does not suffer any significant efficiency reductions due to inclement weather. Geothermal ground loops are buried five to six feet beneath the surface, so they can operate in an ideal temperature environment all year long.
And, as mentioned, a geothermal heat pump qualifies for a significant Federal tax credit. If you’re reading this, it is unlikely that you can purchase and install one of our geothermal units before the 30% credit expires at midnight on New Year’s Eve 2020.
But, hey, don’t let that stop you from trying!
What is more likely is that you’ll be able to get a 26% credit for any GeoCool unit you install next year. And that’s 26% on the purchase price of the product plus the installation. Which for geothermal can add up to some serious savings.