Geothermal Tax Credits for Salem Residents

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

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. As far as the latter are concerned:

  • This credit applies from now through December 31, 2021.
  • It rebates 30% of approved expenditures for systems placed in service between now and December 31, 2019.
  • A gradual decrease in credit value is slated for each succeeding year, so if you’d like the complete 30% credit, you’ll have to take action quickly.
  • Retrofit systems are accounted “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 occupy the home.
  • It’s not necessary that this home be your main residence.
  • Your geothermal heat pump is required to fulfill all federal ENERGY STAR criteria.
  • To claim the Residential Energy Efficient Property Credit, you must finish and file IRS Form 5695.

For additional details, take a look at our blog.

Though it’s a given that we at Mill Creek Heating would be pleased to see you get a geothermal heating and cooling system for your Salem home, we cannot legally lend our approval to any financial tactics for doing so. We can, however, recommend that you talk with a nearby tax professional. He or she can advise you on how best to profit from geothermal tax credits taking into account your singular financial situation.

If you’re eager to find out 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 an unusual resource that provides state-by-state data on thousands of policies and incentives designed to advance  renewable energy and energy efficiency.

And remember: When you finally decide on installing a geothermal heating and cooling system in your home, see the Salem geothermal experts at Mill Creek Heating. We’ll do the job right – to help you start saving both energy and money right from the start.