Geothermal Tax Credits for Annapolis Residents

Looking for considerable savings 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 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 applies from now through December 31, 2021.
  • It rebates 30% of designated expenditures for systems placed in service between now and December 31, 2019.
  • A progressive reduction in credit value is slated for each successive year, so if you want the full 30% credit, you’ll have to move right away.
  • Retrofit systems are accepted as “placed in service” when they’re totally installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are accepted as “placed in service” on the day you, the homeowner, take occupancy of the home.
  • The home doesn’t have to be your main residence.
  • Your geothermal heat pump is required to comply with federal ENERGY STAR criteria.
  • To claim the Residential Energy Efficient Property Credit, you’ll have to finish and file IRS Form 5695.

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

Even though we at Continental Services would like to see you purchase a geothermal heating and cooling system for your Annapolis home, we cannot legally support any financial strategy for doing so. We can, however, recommend that you employ the services of a nearby tax professional. He or she can counsel you on how best to capitalize on geothermal tax credits considering your singular financial situation.

If you want to find out 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 has state-by-state information on heaps of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And remember: When you’ve committed yourself to install a geothermal heating and cooling system in your home, go with the Annapolis geothermal pros at Continental Services. We’ll do the job right – to help you start saving both energy and money right from the start.