Geothermal Tax Credits for Pensacola Residents

Looking to save big 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 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 remains in effect 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 step-down in credit value is set up for each year thereafter, so if you’d like the full 30% credit, you’ll have to take action right away.
  • Retrofit systems are accounted “placed in service” when they’re totally installed and ready for use.
  • Systems for newly built 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 criteria.
  • To receive the Residential Energy Efficient Property Credit, you’ll have to finish and file IRS Form 5695.

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

Though it’s a given that we at Energy Systems would be thrilled to see you get a geothermal heating and cooling system for your Pensacola home, we cannot legally endorse any financial plan for doing so. We can, however, recommend that you employ the services of a nearby tax professional. He or she can educate you on how best to profit from geothermal tax credits in light of your specific financial situation.

If you want 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 an unusual resource that provides state-by-state facts on untold numbers of policies and incentives encouraging  renewable energy and energy efficiency.

And remember: When you’re ready to install a geothermal heating and cooling system in your home, go with the Pensacola geothermal specialists at Energy Systems. We’ll get the job done right – to help you start saving both energy and money right from the start.