Geothermal Tax Credits for Greenville Residents

Looking to save big bucks on the installation of that geothermal heating and cooling system you’ve always fancied? Well, this could be the time!

The Bipartisan Budget Act of 2018, ratified 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 pre-identified expenditures for systems placed in service between now and December 31, 2019.
  • A measured step-down in credit value is set up for each succeeding year, so if you’re after the initial 30% credit, you’ll have to move fast.
  • Retrofit systems are considered “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” at the time you, the homeowner, first inhabit the home.
  • The home doesn’t have to be your chief residence.
  • Your geothermal heat pump must meet federal ENERGY STAR recommendations.
  • To receive the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695.

For further information, check out our blog as well as this WaterFurnace®-prepared piece, Understanding the Federal Incentives for Geothermal Heat Pumps.

Though it’s a given that we at BARGA Heating, Air Conditioning & Refrigeration, Inc. would love to see you install a geothermal heating and cooling system for your Greenville home, we cannot legally suggest any financial tactics for doing so. We can, however, recommend that you employ the services of a nearby tax professional. He or she can advise you on how best to profit from geothermal tax credits taking into account your unique financial situation.

If you’re eager to find out 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 an unusual resource that provides state-by-state data on untold numbers of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And bear in mind: When you finally decide to install a geothermal heating and cooling system in your home, see the Greenville geothermal gurus at BARGA Heating, Air Conditioning & Refrigeration, Inc.. We’ll do the job right – to help you start saving both energy and money right from the start.