Geothermal Tax Credits for Kitsap County Residents

Looking to save big bucks on the installation of that geothermal heating and cooling system you’ve always wanted? 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. As far as the latter are concerned:

  • This credit will stay 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 gradual step-down in credit value is slated for each successive year, so if you want the complete 30% credit, you’ll have to move quickly.
  • Retrofit systems are judged “placed in service” when they’re completely installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are judged “placed in service” on the day you, the homeowner, take occupancy of the home.
  • The home needn’t be your chief residence.
  • Your geothermal heat pump must fulfill all federal ENERGY STAR recommendations.
  • To receive the Residential Energy Efficient Property Credit, you’ll need to finish and file IRS Form 5695.

For further information, read our blog as well as this WaterFurnace®-created handout, Understanding the Federal Incentives for Geothermal Heat Pumps.

Though we at Thermal Systems would love to see you install a geothermal heating and cooling system for your Kitsap County home, we cannot legally support any financial tactics for doing so. We can, however, recommend that you employ the services of a nearby tax professional. He or she can instruct you on how best to take advantage of geothermal tax credits taking into account your particular financial situation.

If you want to learn more about what other energy-related tax incentives might be available to you at the federal, state, and local levels, visit dsireusa.org. This is an unusual resource that has state-by-state facts on scores of policies and incentives championing  renewable energy and energy efficiency.

And remember: When you’ve made up your mind to install a geothermal heating and cooling system in your home, go with the Kitsap County geothermal specialists at Thermal Systems. We’ll do the job right – to help you start saving both energy and money right from the start.