Geothermal Tax Credits for Central Residents

Looking for big savings on the installation of that geothermal heating and cooling system you’ve long wanted? Well, this could be your lucky day!

The Bipartisan Budget Act of 2018, passed in February 2018, reinstates the Residential Energy Efficient Property Credit for fuel cells, small wind systems … and geothermal heat pumps. As far as the latter are concerned:

  • This credit will be in effect from now through December 31, 2021.
  • It pays back 30% of approved expenditures for systems placed in service between now and December 31, 2019.
  • A progressive reduction in credit value is slated for each year following, so if you’d like the complete 30% credit, you’ll have to act fast.
  • Retrofit systems are counted as “placed in service” when they’re fully installed and ready for use.
  • Systems for newly built or newly renovated homes are counted as “placed in service” at the time you, the homeowner, take occupancy of the home.
  • The home does not have to be your principal place of residence.
  • Your geothermal heat pump has to satisfy federal ENERGY STAR criteria.
  • To get the Residential Energy Efficient Property Credit, you’ll need to finish and file IRS Form 5695.

For further information, take a look at our blog.

Even though we at Fairfield Heating & Cooling would love to see you install a geothermal heating and cooling system for your Central home, we cannot legally suggest any financial tactics for doing so. We can, however, recommend that you get together with a local tax professional. He or she can direct you on how best to profit from geothermal tax credits in light of your unique financial situation.

If you want to learn more about what other energy-related tax incentives might be there for you at the federal, state, and local levels, visit dsireusa.org. This is a one-of-a-kind resource that provides state-by-state intelligence on heaps of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And bear in mind: When you’re ready to install a geothermal heating and cooling system in your home, call on the Central geothermal specialists at Fairfield Heating & Cooling. We’ll do the job right – to help you start saving both energy and money right from the start.