Geothermal Tax Credits are Back!

Geothermal tax credits are back! Great news, but, first things first, a geothermal heat pump is a state-of-the-art heating and cooling system. They are energy efficient, better for the environment than old HVAC tech, and can save tons on your annual utility bill. Once upon a time (2016), geothermal heat pump owners could get money back on their investment. Then the geothermal tax credits expired, and Congress didn't do anything about them until now (2018). So, yeah, the credits are back, but what does that mean?

Geothermal Heat Pump Renewable Energy Tax Credit 2018

The original renewable energy benefits were established by the Energy Policy Act of 2005. They were later expanded in the 2009 American Recovery and Reinvestment Act. Back then they were something every geothermal heat pump owner should have taken advantage of. The new ones, which should last through 2021, are no different.

The Details

The details are as simple as can be. Do you have a geothermal heat pump installed in your home you live in or another property you own in the United States? Is that geothermal heat pump Energy Star qualified? It probably is, but just check to be sure. It cannot be combined with solar and wind tax credits or any other energy efficiency upgrade credits. Provided you hit all those requirements, which isn't tough to be honest, you can get a tax credit equal to 30% of the total system cost. This usually consists of the equipment sale price and your installation costs. And that's it. Do that and you can get a lot of money back along with the best HVAC system on the market. Check out the Residential Energy Credits tax form, fill it out, and give it to your accountant at tax time. For more information, we would refer you to the Internal Revenue Service, a sometimes force for good!

IRS Contact Information

Public Information - IRS U.S. Internal Revenue Service; 1111 Constitution Avenue, N.W.; Washington, DC 20224; Phone: (800) 829-1040 Web Site: http://www.irs.gov