Geothermal Tax Credits for Mt. Pleasant Residents

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

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. As far as the latter are concerned:

  • This credit will be in effect from now through December 31, 2021.
  • It covers 30% of allotted expenditures for systems placed in service between now and December 31, 2019.
  • A progressive decrease in credit value is slated for each year following, so if you’d like the initial 30% credit, you’ll have to move fast.
  • Retrofit systems are counted as “placed in service” when they’re completely installed and ready for use.
  • Systems for newly built or newly renovated homes are regarded as “placed in service” on the day you, the homeowner, first settle into the home.
  • It’s not a requirement that this home be your main residence.
  • Your geothermal heat pump is required to satisfy federal ENERGY STAR criteria.
  • To claim 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®-developed handout, Understanding the Federal Incentives for Geothermal Heat Pumps.

While we at Moline Heating & Cooling would be pleased to see you get a geothermal heating and cooling system for your Mt. Pleasant home, we cannot legally sanction any financial plan for doing so. We can, however, recommend that you seek the services of an area tax professional. He or she can direct you on how best to take advantage of geothermal tax credits considering your singular financial situation.

If you’d like 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 an unusual resource that has state-by-state information on untold numbers of policies and incentives championing  renewable energy and energy efficiency.

And don’t forget: When you’ve finally decided to install a geothermal heating and cooling system in your home, head on over to the Mt. Pleasant geothermal experts at Moline Heating & Cooling. We’ll do the job right – to help you start saving both energy and money right from the start.