The budget deal that passed on February 9, 2018, was good news for homeowners who purchased a geothermal system after January 1, 2017. The Residential Renewable Energy Tax Credit, which expired at the end of 2016, was reinstated and extended by the new deal after it was signed into law by President Donald Trump. Some sources report that the Renewable Energy Trade Organization and other groups lobbied Congress for almost two years to get the credit reinstated.
The federal geothermal tax credit of 30% of the cost of a residential system was extended and made retroactive to purchases in 2017. This means homeowners who installed geothermal systems can see the tax savings on their 2017 tax return. Homeowners who already filed their 2017 return can amend the return to realize the tax savings. A tax credit means a dollar-for-dollar reduction of tax liability for units put into service after January, 1, 2017, through 2019. The credit drops to 26% for 2020 and 22% for 2021.
With new home construction booming in Norton Commons, this is exciting news for builders and home buyers. Norton Commons’ geothermal initiative is one of the largest in the nation and reflects Norton Commons’ commitment to the environment. Homes in the North Village are heated and cooled with geothermal technology which takes advantage of moderate ground temperatures to create an efficient system that lowers monthly utility bills without emitting carbon dioxide, carbon monoxide, or other greenhouse gases into the atmosphere. In addition, geothermal equipment generally lasts longer than a traditional furnace and typically requires less maintenance overall.
Geothermal systems result in another distinct advantage for Norton Commons’ homeowners—no outside air conditioning units. Homeowners in Norton Commons can enjoy outdoor living spaces, such as porches and courtyards, without the noise from outside units.
Noise reduction, energy efficiency, lower utility bills, and now a 30% tax credit means great news for Norton Commons’ residents.
To learn read more about the Residential Renewable Energy Tax Credit, follow these links: