Geothermal Tax Credits for Chillicothe Residents

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

The Bipartisan Budget Act of 2018, passed 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 will stay in effect 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 set up for each successive year, so if you’d like the full 30% credit, you’ll have to move swiftly.
  • Retrofit systems are accepted as “placed in service” when they’re fully installed and ready for use.
  • Systems for newly built or newly renovated homes are counted as “placed in service” on the day 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 get 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®-generated handout, Understanding the Federal Incentives for Geothermal Heat Pumps.

While we at Combs Heating & Cooling would love to see you install a geothermal heating and cooling system for your Chillicothe home, we cannot legally suggest any financial strategy 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 profit from geothermal tax credits taking into account your particular financial situation.

If you’re eager to find out 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 a one-of-a-kind resource that’ll give you state-by-state information 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, call on the Chillicothe geothermal gurus at Combs Heating & Cooling. We’ll do the job right – to help you start saving both energy and money right from the start.