Geothermal Tax Credits for Columbia Residents Looking for considerable savings on the installation of that geothermal heating and cooling system you’ve long wanted? Well, this could be your lucky day! The Bipartisan Budget Act of 2018, passed 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 applies from now through December 31, 2021.It pays back 30% of specified expenditures for systems placed in service between now and December 31, 2019. A gradual decrease in credit value is set up for each subsequent year, so if you’re anxious to get 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 counted as “placed in service” on the day you, the homeowner, take occupancy of the home.The home needn’t be your principal place of residence. Your geothermal heat pump must meet federal ENERGY STAR specifications.To claim the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695. For more specifics, read our blog as well as this WaterFurnace®-generated piece, Understanding the Federal Incentives for Geothermal Heat Pumps. Even though we at WaterFurnace would love to see you purchase a geothermal heating and cooling system for your Columbia home, we cannot legally suggest any financial plan for doing so. We can, however, recommend that you employ the services of a nearby tax professional. He or she can direct you on how best to profit from geothermal tax credits given your specific financial situation. If you’re eager to discover more about what other energy-related tax incentives might apply to you at the federal, state, and local levels, visit dsireusa.org. This is a unique resource that has state-by-state facts on untold numbers of policies and incentives designed to stimulate renewable energy and energy efficiency. And remember: When you finally decide on installing a geothermal heating and cooling system in your home, see the Columbia geothermal experts at WaterFurnace. We’ll get the job done right – to help you start saving both energy and money right from the start.