Looking to save big money on the installation of that geothermal heating and cooling system you’ve long fancied? Well, this could be the time!
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. Regarding the latter:
- This credit applies from now through December 31, 2021.
- It covers 30% of allotted expenditures for systems placed in service between now and December 31, 2019.
- A gradual step-down in credit value is set up for each year thereafter, so if you want the full 30% credit, you’ll have to take action 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 judged “placed in service” on the date you, the homeowner, first settle into the home.
- The home doesn’t have to be your principal place of residence.
- Your geothermal heat pump has to satisfy federal ENERGY STAR criteria.
- To claim 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®-created circular, Understanding the Federal Incentives for Geothermal Heat Pumps.
While it’s certainly true that we at Conan Heating & Air Conditioning would like to see you purchase a geothermal heating and cooling system for your Idaho Falls home, we cannot legally support any financial plan for doing so. We can, however, recommend that you consult with a local tax professional. He or she can direct you on how best to capitalize on geothermal tax credits in light of your unique financial situation.
If you’d like to find out more about what other energy-related tax incentives might be applicable to you at the federal, state, and local levels, check out dsireusa.org. This is a unique resource that has state-by-state data on untold numbers of policies and incentives promoting renewable energy and energy efficiency.
And keep in mind: When you finally decide to install a geothermal heating and cooling system in your home, depend on the Idaho Falls geothermal experts at Conan Heating & Air Conditioning. We’ll do the job right – to help you start saving both energy and money right from the start.