Geothermal Tax Credits for Olive Branch Residents

Looking for considerable savings on the installation of that geothermal heating and cooling system you’ve always longed for? Well, this could be the time!

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. Regarding the latter:

  • This credit will stay in effect from now through December 31, 2021.
  • It pays back 30% of specified expenditures for systems placed in service between now and December 31, 2019.
  • A progressive step-down in credit value is scheduled for each subsequent year, so if you’re seeking the total 30% credit, you’ll have to act swiftly.
  • 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 regarded as “placed in service” on the day you, the homeowner, first inhabit the home.
  • The home doesn’t have to be your primary place of residence.
  • Your geothermal heat pump must satisfy federal ENERGY STAR recommendations.
  • To receive the Residential Energy Efficient Property Credit, you should finish and file IRS Form 5695.

For additional details, review our blog.

Though we at Air & Heat Service Co. would be thrilled to see you get a geothermal heating and cooling system for your Olive Branch home, we cannot legally suggest any financial strategy for doing so. We can, however, recommend that you get together with a local tax professional. He or she can educate you on how best to take advantage of geothermal tax credits given your specific financial situation.

If you’re eager to discover more about what other energy-related tax incentives might be there for you at the federal, state, and local levels, go to dsireusa.org. This is a unique resource that provides state-by-state information on thousands of policies and incentives designed to advance  renewable energy and energy efficiency.

And don’t forget: When you’re ready to install a geothermal heating and cooling system in your home, see the Olive Branch geothermal pros at Air & Heat Service Co.. We’ll get the job done right – to help you start saving both energy and money right from the start.