Geothermal Tax Credits for Rochester 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 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. Regarding the latter: This credit will stay in effect from now through December 31, 2021.It pays back 30% of allotted expenditures for systems placed in service between now and December 31, 2019. A gradual reduction in credit value is slated for each succeeding year, so if you’re after the initial 30% credit, you’ll have to act right away.Retrofit systems are accepted as “placed in service” when they’re completely installed and ready for use. Systems for newly built or newly renovated homes are accounted “placed in service” on the date you, the homeowner, first occupy the home.It’s not required 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 must complete and file IRS Form 5695. For additional details, read our blog as well as this WaterFurnace®-prepared handout, Understanding the Federal Incentives for Geothermal Heat Pumps. Though it’s obvious that we at Gast Heating & Cooling Inc. would love to see you get a geothermal heating and cooling system for your Rochester home, we cannot legally lend our approval to any financial strategy for doing so. We can, however, recommend that you speak with an area tax professional. He or she can direct you on how best to profit from geothermal tax credits taking into account your individual financial situation. If you want to learn 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 a one-of-a-kind resource that provides state-by-state facts on untold numbers of policies and incentives designed to stimulate renewable energy and energy efficiency. And don’t forget: When you’ve finally decided to install a geothermal heating and cooling system in your home, depend on the Rochester geothermal specialists at Gast Heating & Cooling Inc.. We’ll do the job right – to help you start saving both energy and money right from the start.