Geothermal Tax Credits for Kalkaska Residents

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

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 applies 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 scheduled for each year following, so if you want the total 30% credit, you’ll have to take action quickly.
  • Retrofit systems are accepted as “placed in service” when they’re totally installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are accounted “placed in service” at the time you, the homeowner, first settle into the home.
  • It’s not necessary that this home be your main residence.
  • Your geothermal heat pump must meet federal ENERGY STAR recommendations.
  • To receive the Residential Energy Efficient Property Credit, you should complete and file IRS Form 5695.

For more specifics, take a look at our blog as well as this WaterFurnace®-generated circular, Understanding the Federal Incentives for Geothermal Heat Pumps.

Even though we at Kalkaska Pumbing & Heating Inc. would love to see you get a geothermal heating and cooling system for your Kalkaska home, we cannot legally lend our approval to any financial scheme for doing so. We can, however, recommend that you get together with a nearby tax professional. He or she can instruct you on how best to profit from geothermal tax credits considering your particular financial situation.

If you’d like to discover more about what other energy-related tax incentives might be there for you at the federal, state, and local levels, visit dsireusa.org. This is an unusual resource that provides state-by-state data on literally thousands of policies and incentives designed to advance  renewable energy and energy efficiency.

And remember: When you’re ready to install a geothermal heating and cooling system in your home, turn to the Kalkaska geothermal gurus at Kalkaska Pumbing & Heating Inc.. We’ll do the job right – to help you start saving both energy and money right from the start.