Geothermal Tax Credits for Big Rapids Residents

Looking to save lots of cash on the installation of that geothermal heating and cooling system you’ve long dreamed of? 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. As far as the latter are concerned:

  • This credit applies from now through December 31, 2021.
  • It pays back 30% of designated expenditures for systems placed in service between now and December 31, 2019.
  • A measured reduction in credit value is scheduled for each succeeding year, so if you’re seeking the full 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 regarded as “placed in service” at the time you, the homeowner, take occupancy of the home.
  • The home does not have to be your chief residence.
  • Your geothermal heat pump is required to fulfill all federal ENERGY STAR specifications.
  • To get the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695.

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

While it’s certainly true that we at Stratz Heating & Cooling, Inc. would love to see you install a geothermal heating and cooling system for your Big Rapids home, we cannot legally support any financial scheme for doing so. We can, however, recommend that you seek the services of an area tax professional. He or she can counsel you on how best to capitalize on geothermal tax credits given your unique 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, look at dsireusa.org. This is a one-of-a-kind resource that’ll give you state-by-state information on thousands of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And remember: When you finally decide on installing a geothermal heating and cooling system in your home, call on the Big Rapids geothermal professionals at Stratz Heating & Cooling, Inc.. We’ll get the job done right – to help you start saving both energy and money right from the start.