Geothermal Tax Credits for Medina Residents

Looking to save a ton of money on the installation of that geothermal heating and cooling system you’ve long fancied? Well, this could be your opportunity!

The Bipartisan Budget Act of 2018, ratified 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 applies from now through December 31, 2021.
  • It covers 30% of specified expenditures for systems placed in service between now and December 31, 2019.
  • A progressive decrease in credit value is slated for each subsequent year, so if you’re seeking the full 30% credit, you’ll have to move right away.
  • Retrofit systems are regarded as “placed in service” when they’re completely installed and ready for use.
  • Systems for newly built or newly renovated homes are counted as “placed in service” at the time you, the homeowner, take occupancy of the home.
  • The home does not have to be your principal place of residence.
  • Your geothermal heat pump has to comply with federal ENERGY STAR criteria.
  • To get the Residential Energy Efficient Property Credit, you’ll need to finish and file IRS Form 5695.

For more specifics, see our blog as well as this WaterFurnace®-generated handout, Understanding the Federal Incentives for Geothermal Heat Pumps.

Though we at Sisler Heating & Cooling, Inc. would love to see you install a geothermal heating and cooling system for your Medina home, we cannot legally sanction any financial scheme for doing so. We can, however, recommend that you talk with a local tax professional. He or she can counsel you on how best to capitalize on geothermal tax credits in light of your singular financial situation.

If you’re eager to learn more about what other energy-related tax incentives might be available to you at the federal, state, and local levels, visit dsireusa.org. This is a unique resource that provides state-by-state intelligence on thousands of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And bear in mind: When you finally decide to install a geothermal heating and cooling system in your home, depend on the Medina geothermal specialists at Sisler Heating & Cooling, Inc.. We’ll do the job right – to help you start saving both energy and money right from the start.