Geothermal Tax Credits for Manhattan Residents

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

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 applies from now through December 31, 2021.
  • It rebates 30% of specified expenditures for systems placed in service between now and December 31, 2019.
  • A measured step-down in credit value is set up for each succeeding year, so if you’re anxious to get the complete 30% credit, you’ll have to move fast.
  • Retrofit systems are considered “placed in service” when they’re fully installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are regarded as “placed in service” at the time you, the homeowner, first inhabit the home.
  • It’s not a requirement that this home be your chief residence.
  • Your geothermal heat pump has to comply with federal ENERGY STAR criteria.
  • To get the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695.

For more specifics, check out our blog.

Even though we at Carlson Heating & AC, LLC would like to see you purchase a geothermal heating and cooling system for your Manhattan home, we cannot legally endorse any financial scheme for doing so. We can, however, recommend that you seek the services of an area tax professional. He or she can instruct you on how best to take advantage of geothermal tax credits in light of your specific financial situation.

If you want to find out more about what other energy-related tax incentives might apply to you at the federal, state, and local levels, look at dsireusa.org. This is an unusual resource that’ll give you state-by-state intelligence on literally thousands of policies and incentives promoting  renewable energy and energy efficiency.

And keep in mind: When you finally decide on installing a geothermal heating and cooling system in your home, see the Manhattan geothermal experts at Carlson Heating & AC, LLC. We’ll get the job done right – to help you start saving both energy and money right from the start.