Arronco Comfort Air is pleased to inform you of the recent success for homeowners. The Continuing Resolution spending bill signed by President Trump in the early morning hours Friday, February 9, 2018, includes a measure to extend the tax credits for the industry-both residential and commercial for geothermal heating, cooling, & hot water systems. The credits for geothermal, which initially expired December 31, 2016, have been extended to December 31, 2021. They’ll remain at 30% until December 31, 2019, at which point they’ll begin a phase-out. For 2020, the credit will move to 26%, and in 2021 the final incentive will be 22%. The tax credit for geothermal was also made retroactive for all of 2017 geothermal installations.
These are tax credits, not tax deductions, meaning 30% of your investment is used to reduce your tax liability for the year, the system is installed. The credit can also be carried forward to future years if not used in its entirety the year it is installed.
Geothermal heating and cooling systems use the free, renewable energy available in your own yard. They work much like a conventional heat pump, but instead of using outdoor air they take advantage of the constant 55-degree ground temperature at depths of 5 feet and below. Geothermal systems circulate water through the ground loop to collect this heat in the winter and deliver air temps of 95-105 degrees through your homes heating system. In the summer, the process is reversed, and heat is taken from your home and delivered back into the ground. As a bonus, the geothermal system also heats the hot water in your home! In the summertime, you get free hot water by removing heat from the home and putting a portion of that heat into your hot water tank.
Benefits of geothermal heating and cooling systems include energy savings of up to 70% on heating, cooling, and hot water cost. There is no need for a noisy outdoor unit; the units have double the lifespan of conventional air conditioners and heat pumps, provide a more comfortable, even heat and can fit in almost any yard.
With the reinstatement of the tax credit, geothermal systems are almost a no-brainer for anyone building a home or needing to replace an existing HVAC system as they will provide quick paybacks and attractive returns on investment.
Arronco Comfort Air is the region’s leader in installing geothermal heating and cooling systems with several thousand installations in Lexington, KY markets since 1984.
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