Geothermal Tax Credits for Reading Residents

Looking for considerable savings on the installation of that geothermal heating and cooling system you’ve always dreamed of? Well, this could be the time!

The Bipartisan Budget Act of 2018, signed into law 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 will be in effect 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 decrease in credit value is scheduled for each year following, so if you’d like the total 30% credit, you’ll have to act swiftly.
  • Retrofit systems are counted as “placed in service” when they’re completely installed and ready for use.
  • Systems for newly built or newly renovated homes are judged “placed in service” on the date you, the homeowner, take occupancy of the home.
  • The home does not have to be your chief residence.
  • Your geothermal heat pump must meet federal ENERGY STAR criteria.
  • To get the Residential Energy Efficient Property Credit, you’ll have to finish and file IRS Form 5695.

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

Even though we at Paul W. Essig Inc. would love to see you install a geothermal heating and cooling system for your Reading home, we cannot legally prescribe any financial scheme for doing so. We can, however, recommend that you seek the services of an area tax professional. He or she can educate you on how best to take advantage of geothermal tax credits considering your specific financial situation.

If you’d like to find out 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 a unique resource that’ll give you state-by-state information on literally thousands of policies and incentives promoting  renewable energy and energy efficiency.

And keep in mind: When you’ve made up your mind to install a geothermal heating and cooling system in your home, go with the Reading geothermal pros at Paul W. Essig Inc.. We’ll get the job done right – to help you start saving both energy and money right from the start.