Geothermal Tax Credits for East Tennessee Residents Looking to save lots of cash 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, signed into law in February 2018, reinstates the Residential Energy Efficient Property Credit for fuel cells, small wind systems … and geothermal heat pumps. Pertaining to the latter: This credit will stay in effect from now through December 31, 2021.It pays back 30% of approved expenditures for systems placed in service between now and December 31, 2019. A progressive reduction in credit value is slated for each year following, so if you’d like the full 30% credit, you’ll have to take action fast.Retrofit systems are regarded as “placed in service” when they’re fully 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, first occupy the home.The home does not have to be your main residence. Your geothermal heat pump is required to satisfy federal ENERGY STAR criteria.To receive the Residential Energy Efficient Property Credit, you’ll need to finish and file IRS Form 5695. For further information, take a look at our blog as well as this WaterFurnace®-produced piece, Understanding the Federal Incentives for Geothermal Heat Pumps. Even though we at Geo Pros of Knoxville would like to see you purchase a geothermal heating and cooling system for your East Tennessee home, we cannot legally suggest any financial scheme for doing so. We can, however, recommend that you seek out an area tax professional. He or she can educate you on how best to profit from geothermal tax credits taking into account your individual financial situation. If you’re eager to find out more about what other energy-related tax incentives might apply to you at the federal, state, and local levels, look at dsireusa.org. This is a unique resource that offers state-by-state data on scores of policies and incentives designed to stimulate renewable energy and energy efficiency. And don’t forget: When you’re ready to install a geothermal heating and cooling system in your home, see the East Tennessee geothermal specialists at Geo Pros of Knoxville. We’ll do the job right – to help you start saving both energy and money right from the start.