Geothermal Tax Credits for Port Washington Residents

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

The Bipartisan Budget Act of 2018, ratified in February 2018, reinstates the Residential Energy Efficient Property Credit for fuel cells, small wind systems … and geothermal heat pumps. Regarding the latter:

  • This credit will stay in effect from now through December 31, 2021.
  • It rebates 30% of pre-identified expenditures for systems placed in service between now and December 31, 2019.
  • A gradual reduction in credit value is set up for each succeeding year, so if you want the full 30% credit, you’ll have to take action quickly.
  • 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 counted as “placed in service” on the date you, the homeowner, first occupy the home.
  • It’s not required that this home be your main residence.
  • Your geothermal heat pump must fulfill all federal ENERGY STAR criteria.
  • To receive the Residential Energy Efficient Property Credit, you’ll need to complete and file IRS Form 5695.

For more specifics, review our blog as well as this WaterFurnace®-prepared piece, Understanding the Federal Incentives for Geothermal Heat Pumps.

While we at Professional Geothermal Systems would be happy to see you purchase a geothermal heating and cooling system for your Port Washington home, we cannot legally prescribe any financial strategy for doing so. We can, however, recommend that you get together with a local tax professional. He or she can instruct you on how best to profit from geothermal tax credits in light of your particular financial situation.

If you’re eager to find out more about what other energy-related tax incentives might be there for you at the federal, state, and local levels, check out dsireusa.org. This is an unusual resource that offers state-by-state facts on thousands of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And bear in mind: When you’ve finally decided to install a geothermal heating and cooling system in your home, call on the Port Washington geothermal gurus at Professional Geothermal Systems. We’ll do the job right – to help you start saving both energy and money right from the start.