Geothermal Tax Credits for Manhattan Residents

Looking to save lots of money on the installation of that geothermal heating and cooling system you’ve always dreamed about? Well, this could be your lucky day!

The Bipartisan Budget Act of 2018, approved 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 applies from now through December 31, 2021.
  • It rebates 30% of specified expenditures for systems placed in service between now and December 31, 2019.
  • A measured step-down in credit value is set up for each year thereafter, so if you’re anxious to get the initial 30% credit, you’ll have to move right away.
  • Retrofit systems are accepted as “placed in service” when they’re completely installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are regarded as “placed in service” on the day you, the homeowner, first occupy the home.
  • The home needn’t be your chief residence.
  • Your geothermal heat pump must satisfy federal ENERGY STAR criteria.
  • To get the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695.

For additional information, read our blog.

Though it’s a given that we at Carlson Heating & AC, LLC would be delighted to see you install a geothermal heating and cooling system for your Manhattan home, we cannot legally endorse any financial scheme for doing so. We can, however, recommend that you consult with a local tax professional. He or she can educate you on how best to take advantage of geothermal tax credits in light of your specific financial situation.

If you want to learn more about what other energy-related tax incentives might be there for you at the federal, state, and local levels, go to dsireusa.org. This is an unusual resource that offers state-by-state intelligence on thousands of policies and incentives promoting  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 Manhattan geothermal experts at Carlson Heating & AC, LLC. We’ll get the job done right – to help you start saving both energy and money right from the start.