Geothermal Tax Credits for Traverse City Residents

Looking for significant savings on the installation of that geothermal heating and cooling system you’ve always fancied? Well, this could be the time!

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. Relative to the latter:

  • This credit applies 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 step-down in credit value is set up for each successive year, so if you want the total 30% credit, you’ll have to act right away.
  • Retrofit systems are accounted “placed in service” when they’re completely installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are considered “placed in service” at the time you, the homeowner, first occupy the home.
  • The home needn’t be your chief 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, take a look at our blog as well as this WaterFurnace®-developed flier, Understanding the Federal Incentives for Geothermal Heat Pumps.

While we at D&W Mechanical would be thrilled to see you install a geothermal heating and cooling system for your Traverse City home, we cannot legally endorse any financial tactics for doing so. We can, however, recommend that you seek the services of an area tax professional. He or she can educate you on how best to capitalize on geothermal tax credits taking into account your specific financial situation.

If you’re eager 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 data on heaps 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, go with the Traverse City geothermal professionals at D&W Mechanical. We’ll get the job done right – to help you start saving both energy and money right from the start.