Geothermal Tax Credits for Grinnell Residents

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

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. Regarding the latter:

  • This credit will be in effect 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 step-down in credit value is slated for each year thereafter, so if you’d like the total 30% credit, you’ll have to take action right away.
  • Retrofit systems are counted as “placed in service” when they’re totally installed and ready for use.
  • Systems for newly built or newly renovated homes are accepted as “placed in service” at the time you, the homeowner, take occupancy of the home.
  • The home does not have to be your main residence.
  • Your geothermal heat pump has to comply with federal ENERGY STAR criteria.
  • To get the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695.

For further information, see our blog as well as this WaterFurnace®-developed handout, Understanding the Federal Incentives for Geothermal Heat Pumps.

While it’s certainly true that we at Latcham Enterprises would like to see you purchase a geothermal heating and cooling system for your Grinnell home, we cannot legally support any financial scheme for doing so. We can, however, recommend that you seek out an area tax professional. He or she can advise you on how best to profit from geothermal tax credits given your singular financial situation.

If you’d like to learn more about what other energy-related tax incentives might be available to you at the federal, state, and local levels, check out dsireusa.org. This is a unique resource that offers state-by-state information on thousands of policies and incentives promoting  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 Grinnell geothermal professionals at Latcham Enterprises. We’ll get the job done right – to help you start saving both energy and money right from the start.