Geothermal Tax Credits for West Branch Residents

Looking to save lots of dough on the installation of that geothermal heating and cooling system you’ve always dreamed of? Well, this could be your lucky day!

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 progressive decrease in credit value is set up for each year following, so if you’d like the initial 30% credit, you’ll have to act right away.
  • 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 accounted “placed in service” on the day you, the homeowner, first occupy the home.
  • The home needn’t be your main residence.
  • Your geothermal heat pump must satisfy federal ENERGY STAR criteria.
  • To get the Residential Energy Efficient Property Credit, you’ll need to complete and file IRS Form 5695.

For more specifics, read our blog as well as this WaterFurnace®-generated circular, Understanding the Federal Incentives for Geothermal Heat Pumps.

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

If you’re eager to find out 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 one-of-a-kind resource that offers state-by-state information on literally thousands of policies and incentives designed to advance  renewable energy and energy efficiency.

And remember: When you’ve finally decided to install a geothermal heating and cooling system in your home, go with the West Branch geothermal professionals at Nicholson Heating & Cooling. We’ll get the job done right – to help you start saving both energy and money right from the start.