Geothermal Tax Credits for Hattiesburg Residents

Looking to save lots of cash on the installation of that geothermal heating and cooling system you’ve always fancied? 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 remains in effect from now through December 31, 2021.
  • It rebates 30% of pre-identified expenditures for systems placed in service between now and December 31, 2019.
  • A gradual reduction in credit value is scheduled for each year following, so if you’d like the total 30% credit, you’ll have to move fast.
  • Retrofit systems are accepted as “placed in service” when they’re totally installed and ready for use.
  • Systems for newly built or newly renovated homes are counted as “placed in service” on the day you, the homeowner, take occupancy of the home.
  • The home needn’t be your chief residence.
  • Your geothermal heat pump has to satisfy federal ENERGY STAR criteria.
  • To receive 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®-prepared circular, Understanding the Federal Incentives for Geothermal Heat Pumps.

Though we at American Air Specialists would be thrilled to see you get a geothermal heating and cooling system for your Hattiesburg home, we cannot legally lend our approval to any financial tactics for doing so. We can, however, recommend that you employ the services of a nearby tax professional. He or she can instruct you on how best to take advantage of geothermal tax credits in light of your unique financial situation.

If you’re eager to find out 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 an unusual resource that has state-by-state data on untold numbers 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, go with the Hattiesburg geothermal professionals at American Air Specialists. We’ll get the job done right – to help you start saving both energy and money right from the start.