Geothermal Tax Credits for Residents Looking to save lots of cash 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 remains in effect from now through December 31, 2021.It covers 30% of designated expenditures for systems placed in service between now and December 31, 2019. A progressive decrease in credit value is slated for each year following, so if you’d like the complete 30% credit, you’ll have to move fast.Retrofit systems are considered “placed in service” when they’re completely 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 needn’t be your principal place of residence. Your geothermal heat pump has to satisfy 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, check out our blog as well as this WaterFurnace®-generated handout, Understanding the Federal Incentives for Geothermal Heat Pumps. While it’s certainly true that we at Geothermal North would love to see you install a geothermal heating and cooling system for your home, we cannot legally sanction any financial plan for doing so. We can, however, recommend that you speak with a local tax professional. He or she can direct you on how best to take advantage of geothermal tax credits considering your individual financial situation. If you’re eager to learn 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 intelligence on literally thousands of policies and incentives advancing renewable energy and energy efficiency. And keep in mind: When you finally decide on installing a geothermal heating and cooling system in your home, turn to the geothermal experts at Geothermal North. We’ll get the job done right – to help you start saving both energy and money right from the start.