Geothermal Tax Credits for Danville Residents

Looking to save big money on the installation of that geothermal heating and cooling system you’ve long fancied? Well, this could be your lucky day!

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 remains in effect from now through December 31, 2021.
  • It offsets 30% of specified expenditures for systems placed in service between now and December 31, 2019.
  • A progressive decrease in credit value is set up for each year thereafter, so if you’re after the complete 30% credit, you’ll have to take action fast.
  • Retrofit systems are judged “placed in service” when they’re completely installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are judged “placed in service” at the time you, the homeowner, first occupy the home.
  • It’s not necessary that this home be your chief residence.
  • Your geothermal heat pump must meet federal ENERGY STAR recommendations.
  • To receive the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695.

For additional information, see our blog as well as this WaterFurnace®-developed handout, Understanding the Federal Incentives for Geothermal Heat Pumps.

Though it’s obvious that we at Geo Climate Control would love to see you install a geothermal heating and cooling system for your Danville home, we cannot legally prescribe any financial plan for doing so. We can, however, recommend that you seek the services of a local tax professional. He or she can educate you on how best to profit from geothermal tax credits considering your specific 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, look at dsireusa.org. This is an unusual resource that’ll give you state-by-state information on untold numbers of policies and incentives promoting  renewable energy and energy efficiency.

And don’t forget: When you’ve finally decided to install a geothermal heating and cooling system in your home, see the Danville geothermal professionals at Geo Climate Control. We’ll do the job right – to help you start saving both energy and money right from the start.