Geothermal Tax Credits for Dexter Residents

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

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. As far as the latter are concerned:

  • This credit applies from now through December 31, 2021.
  • It rebates 30% of designated expenditures for systems placed in service between now and December 31, 2019.
  • A measured step-down in credit value is scheduled for each year following, so if you’d like the initial 30% credit, you’ll have to move right away.
  • Retrofit systems are judged “placed in service” when they’re completely installed and ready for use.
  • Systems for newly built or newly renovated homes are accounted “placed in service” on the date you, the homeowner, first occupy the home.
  • The home doesn’t have to be your chief residence.
  • Your geothermal heat pump is required to meet federal ENERGY STAR criteria.
  • To receive the Residential Energy Efficient Property Credit, you’ll need to complete and file IRS Form 5695.

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

While we at Haley Mechanical would be pleased to see you get a geothermal heating and cooling system for your Dexter home, we cannot legally prescribe any financial plan for doing so. We can, however, recommend that you employ the services of a nearby tax professional. He or she can counsel you on how best to take advantage of geothermal tax credits in light of your individual 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, visit dsireusa.org. This is a unique resource that provides state-by-state data on heaps of policies and incentives encouraging  renewable energy and energy efficiency.

And bear in mind: When you’ve finally decided to install a geothermal heating and cooling system in your home, see the Dexter geothermal specialists at Haley Mechanical. We’ll do the job right – to help you start saving both energy and money right from the start.