Geothermal Tax Credits for Oswego Residents

Looking to save lots of dough 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. Regarding the latter:

  • This credit will be in effect from now through December 31, 2021.
  • It offsets 30% of allotted expenditures for systems placed in service between now and December 31, 2019.
  • A progressive decrease in credit value is set up for each year following, so if you want the total 30% credit, you’ll have to act right away.
  • Retrofit systems are judged “placed in service” when they’re fully installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are counted as “placed in service” at the time you, the homeowner, take occupancy of the home.
  • It’s not required that this home be your chief residence.
  • Your geothermal heat pump has to comply with federal ENERGY STAR specifications.
  • To claim 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®-prepared bulletin, Understanding the Federal Incentives for Geothermal Heat Pumps.

While we at Nodines Heating Inc. would love to see you get a geothermal heating and cooling system for your Oswego home, we cannot legally lend our approval to any financial scheme for doing so. We can, however, recommend that you employ the services of a local tax professional. He or she can counsel you on how best to profit from geothermal tax credits considering your specific financial situation.

If you want to find out more about what other energy-related tax incentives might be there for you at the federal, state, and local levels, check out dsireusa.org. This is a unique resource that has state-by-state data on scores of policies and incentives furthering  renewable energy and energy efficiency.

And don’t forget: When you finally decide on installing a geothermal heating and cooling system in your home, see the Oswego geothermal professionals at Nodines Heating Inc.. We’ll do the job right – to help you start saving both energy and money right from the start.