Geothermal Tax Credits for Defiance Residents Looking for big savings on the installation of that geothermal heating and cooling system you’ve long wanted? Well, this could be your lucky day! The Bipartisan Budget Act of 2018, approved 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 applies 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 scheduled for each year following, so if you’d like the total 30% credit, you’ll have to take action swiftly.Retrofit systems are regarded as “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, take occupancy of the home.It’s not necessary that this home be your main residence. Your geothermal heat pump has to satisfy federal ENERGY STAR specifications.To claim the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695. For additional details, take a look at our blog as well as this WaterFurnace®-produced handout, Understanding the Federal Incentives for Geothermal Heat Pumps. Though it’s a given that we at Schlatters Plumbing Heating & AC would be happy to see you get a geothermal heating and cooling system for your Defiance home, we cannot legally support any financial tactics for doing so. We can, however, recommend that you seek the services of an area tax professional. He or she can counsel you on how best to profit from geothermal tax credits in light of your particular financial situation. If you’d like to learn more about what other energy-related tax incentives might be applicable to you at the federal, state, and local levels, visit dsireusa.org. This is an unusual resource that provides state-by-state facts on thousands of policies and incentives promoting renewable energy and energy efficiency. And keep in mind: When you’re ready to install a geothermal heating and cooling system in your home, depend on the Defiance geothermal pros at Schlatters Plumbing Heating & AC. We’ll do the job right – to help you start saving both energy and money right from the start.