Geothermal Tax Credits for Cape Cod Residents

Looking for major savings on the installation of that geothermal heating and cooling system you’ve long wanted? Well, this could be your chance!

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 offsets 30% of designated expenditures for systems placed in service between now and December 31, 2019.
  • A measured decrease in credit value is scheduled for each succeeding year, so if you’d like the complete 30% credit, you’ll have to take action fast.
  • Retrofit systems are regarded as “placed in service” when they’re completely installed and ready for use.
  • Systems for newly built or newly renovated homes are considered “placed in service” on the day you, the homeowner, first inhabit the home.
  • The home does not have to be your main residence.
  • Your geothermal heat pump must fulfill all federal ENERGY STAR specifications.
  • To get the Residential Energy Efficient Property Credit, you should complete and file IRS Form 5695.

For more specifics, review our blog as well as this WaterFurnace®-created circular, Understanding the Federal Incentives for Geothermal Heat Pumps.

Even though we at Atlantic Well Drilling would love to see you install a geothermal heating and cooling system for your Cape Cod home, we cannot legally sanction any financial plan for doing so. We can, however, recommend that you seek out a nearby tax professional. He or she can direct you on how best to capitalize on geothermal tax credits in light of your unique financial situation.

If you’d like to learn more about what other energy-related tax incentives might be there for you at the federal, state, and local levels, visit dsireusa.org. This is an unusual resource that provides state-by-state data on literally thousands of policies and incentives promoting  renewable energy and energy efficiency.

And don’t forget: When you finally decide on installing a geothermal heating and cooling system in your home, call on the Cape Cod geothermal professionals at Atlantic Well Drilling. We’ll do the job right – to help you start saving both energy and money right from the start.