Geothermal Tax Credits for Reading Residents Looking to save lots of money on the installation of that geothermal heating and cooling system you’ve always dreamed of? Well, this could be your lucky day! 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 remains 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. Though it’s obvious that we at Paul W. Essig Inc. would be pleased to see you get a geothermal heating and cooling system for your Reading home, we cannot legally sanction any financial strategy for doing so. We can, however, recommend that you employ the services of a nearby tax professional. He or she can direct you on how best to capitalize on geothermal tax credits taking into account 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 a unique resource that offers state-by-state information on scores of policies and incentives furthering renewable energy and energy efficiency. And remember: When you’ve committed yourself to install a geothermal heating and cooling system in your home, see the Reading geothermal gurus 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.