Geothermal Tax Credits for Huntington Residents

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

The Bipartisan Budget Act of 2018, approved in February 2018, reinstates the Residential Energy Efficient Property Credit for fuel cells, small wind systems … and geothermal heat pumps. Pertaining to the latter:

  • This credit will stay in effect 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 progressive reduction in credit value is slated for each year thereafter, so if you want the initial 30% credit, you’ll have to take action right away.
  • Retrofit systems are regarded as “placed in service” when they’re fully installed and ready for use.
  • Systems for newly built or newly renovated homes are considered “placed in service” on the date you, the homeowner, take occupancy of the home.
  • It’s not a requirement that this home be your chief residence.
  • Your geothermal heat pump is required to meet federal ENERGY STAR recommendations.
  • To receive the Residential Energy Efficient Property Credit, you’ll need to complete and file IRS Form 5695.

For additional information, review our blog as well as this WaterFurnace®-produced piece, Understanding the Federal Incentives for Geothermal Heat Pumps.

While we at Huntington Heating & Cooling Inc. would like to see you get a geothermal heating and cooling system for your Huntington home, we cannot legally prescribe any financial plan for doing so. We can, however, recommend that you consult with an area tax professional. He or she can advise you on how best to capitalize on geothermal tax credits taking into account your specific financial situation.

If you want to learn more about what other energy-related tax incentives might apply to you at the federal, state, and local levels, visit dsireusa.org. This is an unusual resource that provides state-by-state intelligence on heaps of policies and incentives designed to advance  renewable energy and energy efficiency.

And bear in mind: When you’ve made up your mind to install a geothermal heating and cooling system in your home, call on the Huntington geothermal experts at Huntington Heating & Cooling Inc.. We’ll do the job right – to help you start saving both energy and money right from the start.