Geothermal Tax Credits for Residents Looking to save big bucks on the installation of that geothermal heating and cooling system you’ve always dreamed of? Well, this could be the time! The Bipartisan Budget Act of 2018, signed 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 allotted expenditures for systems placed in service between now and December 31, 2019. A progressive step-down in credit value is set up for each succeeding year, so if you’re anxious to get the full 30% credit, you’ll have to act swiftly.Retrofit systems are accepted as “placed in service” when they’re totally installed and ready for use. Systems for newly built or newly renovated homes are judged “placed in service” at the time you, the homeowner, take occupancy of the home.The home needn’t be your chief residence. Your geothermal heat pump must fulfill all federal ENERGY STAR recommendations.To claim the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695. For additional information, see our blog as well as this WaterFurnace®-created flier, Understanding the Federal Incentives for Geothermal Heat Pumps. Though it’s a given that we at Ground Loop Heating & Air Conditioning, Inc would like to see you purchase a geothermal heating and cooling system for your home, we cannot legally support any financial scheme for doing so. We can, however, recommend that you seek out an area tax professional. He or she can advise you on how best to capitalize on geothermal tax credits given your particular financial situation. If you want to discover more about what other energy-related tax incentives might apply to you at the federal, state, and local levels, go to dsireusa.org. This is a unique resource that has state-by-state data on untold numbers of policies and incentives designed to stimulate renewable energy and energy efficiency. And remember: When you finally decide to install a geothermal heating and cooling system in your home, see the geothermal professionals at Ground Loop Heating & Air Conditioning, Inc. We’ll get the job done right – to help you start saving both energy and money right from the start.