Geothermal Tax Credits for Greensburg Residents

Looking to save lots of cash on the installation of that geothermal heating and cooling system you’ve always longed for? Well, this could be your chance!

The Bipartisan Budget Act of 2018, approved 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 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 set up for each year following, so if you’re anxious to get the complete 30% credit, you’ll have to act right away.
  • Retrofit systems are counted as “placed in service” when they’re fully installed and ready for use.
  • Systems for newly built or newly renovated homes are regarded as “placed in service” on the date you, the homeowner, take occupancy of the home.
  • The home doesn’t have to be your principal place of residence.
  • Your geothermal heat pump has to comply with federal ENERGY STAR criteria.
  • To receive the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695.

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

Even though we at Wallpe Heating & Cooling would be delighted to see you install a geothermal heating and cooling system for your Greensburg home, we cannot legally endorse any financial plan for doing so. We can, however, recommend that you seek the services of an area tax professional. He or she can advise you on how best to take advantage of geothermal tax credits considering your specific financial situation.

If you want 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 unique resource that has state-by-state facts on heaps of policies and incentives designed to advance  renewable energy and energy efficiency.

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