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 as well as this WaterFurnace®-created circular, Understanding the Federal Incentives for Geothermal Heat Pumps.

While we at Fairfield Heating & Cooling would be pleased to see you get a geothermal heating and cooling system for your Central home, we cannot legally sanction any financial scheme for doing so. We can, however, recommend that you employ the services of a nearby tax professional. He or she can instruct you on how best to take advantage of geothermal tax credits considering your unique financial situation.

If you’re eager 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 unique resource that’ll give you state-by-state information on untold numbers of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And remember: When you’ve committed yourself to install a geothermal heating and cooling system in your home, see the Central geothermal gurus at Fairfield Heating & Cooling. We’ll do the job right – to help you start saving both energy and money right from the start.