Geothermal Tax Credits for Van Buren Residents

Looking for major savings on the installation of that geothermal heating and cooling system you’ve always dreamed about? 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 will be in effect 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 measured decrease in credit value is slated for each year following, so if you want the full 30% credit, you’ll have to take action right away.
  • Retrofit systems are regarded as “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” on the date you, the homeowner, first settle into the home.
  • The home needn’t be your chief residence.
  • Your geothermal heat pump is required to fulfill all federal ENERGY STAR specifications.
  • To claim the Residential Energy Efficient Property Credit, you should finish and file IRS Form 5695.

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

While it’s certainly true that we at American Energy Guard would love to see you install a geothermal heating and cooling system for your Van Buren home, we cannot legally suggest any financial tactics for doing so. We can, however, recommend that you employ the services of an area tax professional. He or she can advise you on how best to take advantage of geothermal tax credits considering your particular financial situation.

If you’d like to learn 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 an unusual resource that offers state-by-state information on scores of policies and incentives designed to advance  renewable energy and energy efficiency.

And remember: When you’ve committed yourself to install a geothermal heating and cooling system in your home, go with the Van Buren geothermal pros at American Energy Guard. We’ll get the job done right – to help you start saving both energy and money right from the start.