Geothermal Tax Credits for Rochester Residents

Looking to save big bucks 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 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 remains in effect from now through December 31, 2021.
  • It covers 30% of specified expenditures for systems placed in service between now and December 31, 2019.
  • A measured step-down in credit value is scheduled for each succeeding year, so if you’re anxious to get the complete 30% credit, you’ll have to act fast.
  • Retrofit systems are counted as “placed in service” when they’re fully installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are considered “placed in service” on the date you, the homeowner, first settle into the home.
  • It’s not necessary that this home be your chief residence.
  • Your geothermal heat pump is required to comply with federal ENERGY STAR recommendations.
  • To claim the Residential Energy Efficient Property Credit, you should finish and file IRS Form 5695.

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

While it’s certainly true that we at Earth Energy Heating & Cooling Inc. would be delighted to see you get a geothermal heating and cooling system for your Rochester home, we cannot legally prescribe any financial plan for doing so. We can, however, recommend that you seek out a local tax professional. He or she can advise you on how best to take advantage of geothermal tax credits given your individual financial situation.

If you’re eager to learn more about what other energy-related tax incentives might apply to you at the federal, state, and local levels, go to dsireusa.org. This is a unique resource that’ll give you state-by-state intelligence on thousands of policies and incentives encouraging  renewable energy and energy efficiency.

And don’t forget: When you finally decide to install a geothermal heating and cooling system in your home, see the Rochester geothermal specialists at Earth Energy Heating & Cooling Inc.. We’ll do the job right – to help you start saving both energy and money right from the start.