Geothermal Tax Credits for Rochester Residents

Looking for significant savings on the installation of that geothermal heating and cooling system you’ve long longed for? 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. Pertaining to the latter:

  • This credit will stay 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 progressive reduction in credit value is slated for each year following, so if you want the full 30% credit, you’ll have to move right away.
  • Retrofit systems are regarded 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 accounted “placed in service” on the day you, the homeowner, first occupy the home.
  • It’s not necessary that this home be your chief residence.
  • Your geothermal heat pump is required to fulfill all federal ENERGY STAR specifications.
  • To receive the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695.

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

Even though we at Van Hee Mechanical would be pleased to see you get a geothermal heating and cooling system for your Rochester home, we cannot legally suggest any financial tactics for doing so. We can, however, recommend that you seek the services of an area tax professional. He or she can direct you on how best to take advantage of geothermal tax credits considering your particular financial situation.

If you’d like 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 a unique resource that’ll give you state-by-state data on heaps of policies and incentives championing  renewable energy and energy efficiency.

And keep in mind: When you finally decide on installing a geothermal heating and cooling system in your home, go with the Rochester geothermal specialists at Van Hee Mechanical. We’ll get the job done right – to help you start saving both energy and money right from the start.