Geothermal Tax Credits for Fort Wayne Residents

Looking for major savings on the installation of that geothermal heating and cooling system you’ve long wanted? 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. Regarding the latter:

  • This credit will stay in effect from now through December 31, 2021.
  • It pays back 30% of pre-identified expenditures for systems placed in service between now and December 31, 2019.
  • A measured reduction in credit value is set up for each year thereafter, so if you’re after the initial 30% credit, you’ll have to act fast.
  • Retrofit systems are accepted as “placed in service” when they’re completely installed and ready for use.
  • Systems for newly built or newly renovated homes are accepted as “placed in service” at the time you, the homeowner, take occupancy of the home.
  • It’s not a requirement that this home be your chief residence.
  • Your geothermal heat pump must meet federal ENERGY STAR criteria.
  • To get the Residential Energy Efficient Property Credit, you must finish and file IRS Form 5695.

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

Though it’s obvious that we at Masters Heating & Cooling, Inc. would like to see you purchase a geothermal heating and cooling system for your Fort Wayne home, we cannot legally support any financial tactics for doing so. We can, however, recommend that you speak with a local tax professional. He or she can instruct you on how best to take advantage of geothermal tax credits considering your particular financial situation.

If you’d like to discover more about what other energy-related tax incentives might be there for you at the federal, state, and local levels, check out dsireusa.org. This is a one-of-a-kind resource that has state-by-state facts 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, head on over to the Fort Wayne geothermal experts at Masters Heating & Cooling, Inc.. We’ll get the job done right – to help you start saving both energy and money right from the start.