Geothermal Tax Credits for Ebensburg Residents

Looking to save lots of money on the installation of that geothermal heating and cooling system you’ve long fancied? Well, this could be your chance!

The Bipartisan Budget Act of 2018, ratified 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 pre-identified expenditures for systems placed in service between now and December 31, 2019.
  • A progressive decrease in credit value is set up for each subsequent year, so if you’d like the full 30% credit, you’ll have to move 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 counted as “placed in service” at the time you, the homeowner, take occupancy of the home.
  • It’s not required that this home be your primary place of residence.
  • Your geothermal heat pump must fulfill all federal ENERGY STAR recommendations.
  • To get the Residential Energy Efficient Property Credit, you’ll need to finish and file IRS Form 5695.

For further information, read our blog as well as this WaterFurnace®-produced bulletin, Understanding the Federal Incentives for Geothermal Heat Pumps.

Though it’s obvious that we at Kupetz's Plumbing & Heating would love to see you install a geothermal heating and cooling system for your Ebensburg home, we cannot legally suggest any financial scheme 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 capitalize on geothermal tax credits taking into account your individual financial situation.

If you’re eager to learn more about what other energy-related tax incentives might be there for you at the federal, state, and local levels, visit dsireusa.org. This is a one-of-a-kind resource that has state-by-state information on literally thousands of policies and incentives advancing  renewable energy and energy efficiency.

And remember: When you’re ready to install a geothermal heating and cooling system in your home, go with the Ebensburg geothermal specialists at Kupetz's Plumbing & Heating. We’ll do the job right – to help you start saving both energy and money right from the start.