Geothermal Tax Credits for The Hudson Valley Residents

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

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. Pertaining to the latter:

  • This credit remains in effect from now through December 31, 2021.
  • It offsets 30% of approved expenditures for systems placed in service between now and December 31, 2019.
  • A gradual step-down in credit value is set up for each subsequent year, so if you’re after the full 30% credit, you’ll have to take action fast.
  • Retrofit systems are regarded as “placed in service” when they’re totally installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are considered “placed in service” at the time you, the homeowner, take occupancy of the home.
  • It’s not necessary that this home be your primary place of residence.
  • Your geothermal heat pump is required to comply with federal ENERGY STAR specifications.
  • To receive the Residential Energy Efficient Property Credit, you’ll need to finish and file IRS Form 5695.

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

Though it’s obvious that we at Verdae Geothermal would like to see you purchase a geothermal heating and cooling system for your The Hudson Valley home, we cannot legally lend our approval to any financial tactics 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 take advantage of geothermal tax credits given your particular financial situation.

If you’re eager to find out more about what other energy-related tax incentives might apply to you at the federal, state, and local levels, look at dsireusa.org. This is an unusual resource that has state-by-state information on heaps of policies and incentives advancing  renewable energy and energy efficiency.

And don’t forget: When you’re ready to install a geothermal heating and cooling system in your home, head on over to the The Hudson Valley geothermal professionals at Verdae Geothermal. We’ll do the job right – to help you start saving both energy and money right from the start.