Geothermal Tax Credits for Lafayette Residents

Looking to save big bucks on the installation of that geothermal heating and cooling system you’ve long fancied? Well, this could be the time!

The Bipartisan Budget Act of 2018, passed 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 will be in effect from now through December 31, 2021.
  • It covers 30% of approved expenditures for systems placed in service between now and December 31, 2019.
  • A measured reduction in credit value is scheduled for each successive year, so if you want the initial 30% credit, you’ll have to take action fast.
  • Retrofit systems are considered “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” on the date you, the homeowner, first occupy the home.
  • The home doesn’t have to be your main residence.
  • Your geothermal heat pump has to comply with federal ENERGY STAR criteria.
  • To get the Residential Energy Efficient Property Credit, you’ll have to finish and file IRS Form 5695.

For additional information, check out our blog as well as this WaterFurnace®-prepared circular, Understanding the Federal Incentives for Geothermal Heat Pumps.

While it’s certainly true that we at Korschot's Heating and Air would be thrilled to see you get a geothermal heating and cooling system for your Lafayette home, we cannot legally suggest any financial scheme 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 profit from geothermal tax credits given your specific financial situation.

If you want 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 facts on literally thousands of policies and incentives designed to stimulate  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 Lafayette geothermal experts at Korschot's Heating and Air. We’ll get the job done right – to help you start saving both energy and money right from the start.