Geothermal Tax Credits for Meridian Residents

Looking to save lots of cash on the installation of that geothermal heating and cooling system you’ve always 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. Relative to the latter:

  • This credit applies from now through December 31, 2021.
  • It offsets 30% of designated expenditures for systems placed in service between now and December 31, 2019.
  • A measured step-down in credit value is set up for each succeeding year, so if you want the complete 30% credit, you’ll have to act quickly.
  • Retrofit systems are judged “placed in service” when they’re totally 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, first settle into the home.
  • It’s not a requirement that this home be your main residence.
  • Your geothermal heat pump must meet federal ENERGY STAR criteria.
  • To receive the Residential Energy Efficient Property Credit, you’ll need to finish and file IRS Form 5695.

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

Even though we at Heblon Heating & Air Conditioning Co. would like to see you purchase a geothermal heating and cooling system for your Meridian home, we cannot legally suggest any financial scheme for doing so. We can, however, recommend that you seek the services of an area tax professional. He or she can advise you on how best to profit from geothermal tax credits considering your individual financial situation.

If you’d like to learn more about what other energy-related tax incentives might be available to you at the federal, state, and local levels, visit dsireusa.org. This is an unusual resource that offers state-by-state information on untold numbers of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And bear in mind: When you finally decide to install a geothermal heating and cooling system in your home, depend on the Meridian geothermal gurus at Heblon Heating & Air Conditioning Co.. We’ll get the job done right – to help you start saving both energy and money right from the start.