Geothermal Tax Credits for Southern Ohio Residents

Looking to save a ton of money 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, ratified 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 offsets 30% of pre-identified expenditures for systems placed in service between now and December 31, 2019.
  • A measured decrease in credit value is set up for each subsequent year, so if you’re anxious to get the initial 30% credit, you’ll have to take action fast.
  • Retrofit systems are considered “placed in service” when they’re fully installed and ready for use.
  • Systems for newly built or newly renovated homes are regarded as “placed in service” on the day you, the homeowner, first occupy the home.
  • The home doesn’t have to be your principal place of residence.
  • Your geothermal heat pump must fulfill all federal ENERGY STAR specifications.
  • To get the Residential Energy Efficient Property Credit, you’ll need to finish and file IRS Form 5695.

For more specifics, read our blog as well as this WaterFurnace®-produced flier, Understanding the Federal Incentives for Geothermal Heat Pumps.

Even though we at Daniel's HVAC, LLC would love to see you install a geothermal heating and cooling system for your Southern Ohio home, we cannot legally support any financial scheme for doing so. We can, however, recommend that you seek the services of an area tax professional. He or she can advise you on how best to capitalize on geothermal tax credits taking into account your particular financial situation.

If you’re eager to learn more about what other energy-related tax incentives might be applicable to you at the federal, state, and local levels, check out dsireusa.org. This is an unusual resource that provides state-by-state data on thousands of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And bear in mind: When you’re ready to install a geothermal heating and cooling system in your home, go with the Southern Ohio geothermal professionals at Daniel's HVAC, LLC. We’ll get the job done right – to help you start saving both energy and money right from the start.