Geothermal Tax Credits for Lexington Residents Looking to save big time 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. Relative to the latter: This credit remains in effect from now through December 31, 2021.It offsets 30% of approved expenditures for systems placed in service between now and December 31, 2019. A gradual reduction in credit value is scheduled for each successive year, so if you’re anxious to get the full 30% credit, you’ll have to take action fast.Retrofit systems are regarded as “placed in service” when they’re fully installed and ready for use. Systems for newly built or newly renovated homes are regarded as “placed in service” at the time you, the homeowner, first settle into the home.The home doesn’t have to be your main residence. Your geothermal heat pump must fulfill all federal ENERGY STAR recommendations.To claim the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695. For additional details, see our blog as well as this WaterFurnace®-created handout, Understanding the Federal Incentives for Geothermal Heat Pumps. Though we at Arronco Comfort Air, Inc. would love to see you install a geothermal heating and cooling system for your Lexington 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 direct you on how best to profit from geothermal tax credits given your individual financial situation. If you’re eager to discover more about what other energy-related tax incentives might be available to you at the federal, state, and local levels, check out dsireusa.org. This is a unique resource that offers state-by-state data on scores of policies and incentives designed to stimulate renewable energy and energy efficiency. And remember: When you finally decide on installing a geothermal heating and cooling system in your home, see the Lexington geothermal specialists at Arronco Comfort Air, Inc.. We’ll get the job done right – to help you start saving both energy and money right from the start.