Geothermal Tax Credits for Greater Cincinnati Residents

Looking for big savings on the installation of that geothermal heating and cooling system you’ve always dreamed of? Well, this could be the time!

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 remains in effect from now through December 31, 2021.
  • It rebates 30% of allotted expenditures for systems placed in service between now and December 31, 2019.
  • A progressive decrease in credit value is slated for each successive year, so if you want the initial 30% credit, you’ll have to act quickly.
  • Retrofit systems are counted as “placed in service” when they’re totally installed and ready for use.
  • Systems for newly built or newly renovated homes are accepted as “placed in service” on the day you, the homeowner, take occupancy of the home.
  • It’s not necessary that this home be your primary place of residence.
  • Your geothermal heat pump is required to satisfy federal ENERGY STAR criteria.
  • To receive the Residential Energy Efficient Property Credit, you’ll have to finish and file IRS Form 5695.

For additional details, take a look at our blog.

Though it’s obvious that we at Bill Spade Electric, Heating & Cooling would love to see you install a geothermal heating and cooling system for your Greater Cincinnati home, we cannot legally sanction any financial scheme for doing so. We can, however, recommend that you meet with a local tax professional. He or she can counsel you on how best to capitalize on geothermal tax credits considering your singular 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, go to dsireusa.org. This is a unique resource that has state-by-state facts on thousands of policies and incentives designed to advance  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 Greater Cincinnati geothermal pros at Bill Spade Electric, Heating & Cooling. We’ll do the job right – to help you start saving both energy and money right from the start.