Geothermal Tax Credits for Newton Residents

Looking for big savings on the installation of that geothermal heating and cooling system you’ve long dreamed about? 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. As far as the latter are concerned:

  • This credit will be in effect from now through December 31, 2021.
  • It offsets 30% of specified expenditures for systems placed in service between now and December 31, 2019.
  • A progressive decrease in credit value is scheduled for each succeeding year, so if you’re seeking the full 30% credit, you’ll have to move quickly.
  • Retrofit systems are counted as “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, first inhabit the home.
  • It’s not a requirement that this home be your main residence.
  • Your geothermal heat pump must fulfill all federal ENERGY STAR criteria.
  • To receive the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695.

For more specifics, read our blog as well as this WaterFurnace®-developed circular, Understanding the Federal Incentives for Geothermal Heat Pumps.

While it’s certainly true that we at Perfection Contracting, Inc. would love to see you install a geothermal heating and cooling system for your Newton home, we cannot legally support any financial scheme 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 given your individual financial situation.

If you’d like to discover 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 a one-of-a-kind resource that offers state-by-state information on scores of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And bear in mind: When you finally decide on installing a geothermal heating and cooling system in your home, go with the Newton geothermal gurus at Perfection Contracting, Inc.. We’ll get the job done right – to help you start saving both energy and money right from the start.