Geothermal Tax Credits for Central Residents

Looking to save big time on the installation of that geothermal heating and cooling system you’ve long wanted? Well, this could be the time!

The Bipartisan Budget Act of 2018, approved 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 applies from now through December 31, 2021.
  • It pays back 30% of allotted expenditures for systems placed in service between now and December 31, 2019.
  • A gradual reduction in credit value is slated for each succeeding year, so if you’d like the initial 30% credit, you’ll have to act right away.
  • Retrofit systems are regarded as “placed in service” when they’re fully installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are regarded as “placed in service” at the time you, the homeowner, first inhabit the home.
  • The home does not have to be your chief residence.
  • Your geothermal heat pump must comply with federal ENERGY STAR specifications.
  • To claim the Residential Energy Efficient Property Credit, you’ll need to finish and file IRS Form 5695.

For more specifics, take a look at our blog.

Even though we at Fairfield Heating & Cooling would be happy to see you purchase a geothermal heating and cooling system for your Central home, we cannot legally suggest any financial scheme for doing so. We can, however, recommend that you employ the services of an area tax professional. He or she can direct you on how best to profit from geothermal tax credits taking into account your unique financial situation.

If you want to find out 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 untold numbers of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And remember: When you’re ready to install a geothermal heating and cooling system in your home, see 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.