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Geothermal Tax Credits for Myrtle Beach Residents

Looking for major savings 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, passed 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 allotted expenditures for systems placed in service between now and December 31, 2019.
  • A progressive decrease in credit value is set up for each successive year, so if you’re after the initial 30% credit, you’ll have to take action right away.
  • Retrofit systems are counted 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 accounted “placed in service” on the date you, the homeowner, take occupancy of the home.
  • The home doesn’t have to be your principal place of residence.
  • Your geothermal heat pump has to comply with federal ENERGY STAR recommendations.
  • To receive the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695.

For more specifics, check out our blog as well as this WaterFurnace®-prepared piece, Understanding the Federal Incentives for Geothermal Heat Pumps.

Though it’s obvious that we at J & J Air would love to see you install a geothermal heating and cooling system for your Myrtle Beach 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 counsel you on how best to take advantage of geothermal tax credits considering your particular financial situation.

If you want to discover 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 a one-of-a-kind resource that has state-by-state data on untold numbers of policies and incentives promoting  renewable energy and energy efficiency.

And don’t forget: When you’ve finally decided to install a geothermal heating and cooling system in your home, call on the Myrtle Beach geothermal specialists at J & J Air. We’ll get the job done right – to help you start saving both energy and money right from the start.