Geothermal Tax Credits for New Haven County Residents

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

The Bipartisan Budget Act of 2018, signed 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 pays back 30% of allotted 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 seeking the initial 30% credit, you’ll have to act swiftly.
  • Retrofit systems are regarded as “placed in service” when they’re fully 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.
  • It’s not required that this home be your main residence.
  • Your geothermal heat pump has to satisfy federal ENERGY STAR specifications.
  • To get the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695.

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

Even though we at Nero Air Conditioning and Heating would be pleased to see you get a geothermal heating and cooling system for your New Haven County home, we cannot legally lend our approval to any financial scheme for doing so. We can, however, recommend that you employ the services of a nearby tax professional. He or she can educate you on how best to capitalize on geothermal tax credits considering your specific financial situation.

If you’d like to find out more about what other energy-related tax incentives might be there for you at the federal, state, and local levels, visit dsireusa.org. This is a one-of-a-kind resource that provides state-by-state information on scores of policies and incentives advancing  renewable energy and energy efficiency.

And remember: When you finally decide on installing a geothermal heating and cooling system in your home, depend on the New Haven County geothermal specialists at Nero Air Conditioning and Heating. We’ll do the job right – to help you start saving both energy and money right from the start.