Geothermal Tax Credits for Indianapolis Residents

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

The Bipartisan Budget Act of 2018, signed 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 applies from now through December 31, 2021.
  • It covers 30% of designated expenditures for systems placed in service between now and December 31, 2019.
  • A progressive step-down in credit value is set up for each succeeding year, so if you want the initial 30% credit, you’ll have to take action right away.
  • Retrofit systems are accepted as “placed in service” when they’re fully installed and ready for use.
  • Systems for newly built or newly renovated homes are considered “placed in service” at the time you, the homeowner, first inhabit the home.
  • The home needn’t be your chief residence.
  • Your geothermal heat pump must fulfill all federal ENERGY STAR specifications.
  • To get 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®-created piece, Understanding the Federal Incentives for Geothermal Heat Pumps.

Even though we at Bassett Services Inc. would like to see you get a geothermal heating and cooling system for your Indianapolis home, we cannot legally lend our approval to any financial strategy for doing so. We can, however, recommend that you get together with a nearby tax professional. He or she can counsel you on how best to capitalize on geothermal tax credits in light of your unique financial situation.

If you’d like to discover 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 data on untold numbers of policies and incentives furthering  renewable energy and energy efficiency.

And remember: When you’re ready to install a geothermal heating and cooling system in your home, turn to the Indianapolis geothermal experts at Bassett Services Inc.. We’ll get the job done right – to help you start saving both energy and money right from the start.