Geothermal Tax Credits for Central Minnesota Residents

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

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. Pertaining to the latter:

  • This credit remains in effect from now through December 31, 2021.
  • It rebates 30% of approved expenditures for systems placed in service between now and December 31, 2019.
  • A progressive reduction in credit value is slated for each year following, so if you want the complete 30% credit, you’ll have to take action fast.
  • Retrofit systems are considered “placed in service” when they’re completely installed and ready for use.
  • Systems for newly built or newly renovated homes are judged “placed in service” on the date you, the homeowner, first settle into the home.
  • It’s not necessary 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 should fill out and file IRS Form 5695.

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

Though we at Geothermal Concept would be pleased to see you get a geothermal heating and cooling system for your Central Minnesota home, we cannot legally endorse any financial strategy for doing so. We can, however, recommend that you get together with a local tax professional. He or she can counsel you on how best to capitalize on geothermal tax credits in light of your singular 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 an unusual resource that offers state-by-state information on untold numbers of policies and incentives championing  renewable energy and energy efficiency.

And keep in mind: When you’re ready to install a geothermal heating and cooling system in your home, go with the Central Minnesota geothermal specialists at Geothermal Concept. We’ll get the job done right – to help you start saving both energy and money right from the start.