Geothermal Tax Credits for Topeka Residents

Looking for significant savings on the installation of that geothermal heating and cooling system you’ve long fancied? Well, this could be your opportunity!

The Bipartisan Budget Act of 2018, approved 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 offsets 30% of allotted expenditures for systems placed in service between now and December 31, 2019.
  • A gradual decrease in credit value is set up for each succeeding year, so if you’re seeking the initial 30% credit, you’ll have to act fast.
  • Retrofit systems are considered “placed in service” when they’re completely 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, take occupancy of the home.
  • The home does not have to be your principal place of residence.
  • Your geothermal heat pump must meet federal ENERGY STAR criteria.
  • To get the Residential Energy Efficient Property Credit, you’ll have to finish and file IRS Form 5695.

For more specifics, take a look at our blog as well as this WaterFurnace®-produced bulletin, Understanding the Federal Incentives for Geothermal Heat Pumps.

While we at Ground Source, Inc. would love to see you purchase a geothermal heating and cooling system for your Topeka home, we cannot legally suggest any financial tactics for doing so. We can, however, recommend that you speak with an area tax professional. He or she can instruct you on how best to profit from geothermal tax credits considering your particular financial situation.

If you want to learn 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 a unique resource that offers state-by-state data on literally thousands of policies and incentives designed to advance  renewable energy and energy efficiency.

And remember: When you’ve committed yourself to install a geothermal heating and cooling system in your home, turn to the Topeka geothermal pros at Ground Source, Inc.. We’ll get the job done right – to help you start saving both energy and money right from the start.