Geothermal Tax Credits for Williamsport Residents

Looking for major savings on the installation of that geothermal heating and cooling system you’ve always wanted? 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 remains in effect from now through December 31, 2021.
  • It rebates 30% of specified expenditures for systems placed in service between now and December 31, 2019.
  • A measured reduction in credit value is set up for each subsequent year, so if you want the initial 30% credit, you’ll have to take action right away.
  • Retrofit systems are accounted “placed in service” when they’re fully installed and ready for use.
  • Systems for newly built or newly renovated homes are counted as “placed in service” on the date you, the homeowner, first occupy the home.
  • The home doesn’t have to be your primary place of residence.
  • Your geothermal heat pump must meet federal ENERGY STAR criteria.
  • To get the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695.

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

While we at Hepler Geothermal Inc. would love to see you get a geothermal heating and cooling system for your Williamsport home, we cannot legally support any financial strategy for doing so. We can, however, recommend that you seek the services of a local tax professional. He or she can educate you on how best to profit from geothermal tax credits taking into account your unique 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, check out dsireusa.org. This is an unusual resource that provides state-by-state intelligence on heaps of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And bear in mind: When you’re ready to install a geothermal heating and cooling system in your home, see the Williamsport geothermal specialists at Hepler Geothermal Inc.. We’ll get the job done right – to help you start saving both energy and money right from the start.