Geothermal Tax Credits for Knox County Residents

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

The Bipartisan Budget Act of 2018, approved 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 remains in effect from now through December 31, 2021.
  • It covers 30% of approved expenditures for systems placed in service between now and December 31, 2019.
  • A measured reduction in credit value is set up for each successive year, so if you want the total 30% credit, you’ll have to move right away.
  • Retrofit systems are considered “placed in service” when they’re completely installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are counted as “placed in service” on the day you, the homeowner, take occupancy of the home.
  • It’s not necessary that this home be your chief residence.
  • Your geothermal heat pump is required to fulfill all federal ENERGY STAR criteria.
  • To receive the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695.

For additional details, check out our blog as well as this WaterFurnace®-generated flier, Understanding the Federal Incentives for Geothermal Heat Pumps.

While we at Cosby Heating and Cooling would love to see you install a geothermal heating and cooling system for your Knox County home, we cannot legally suggest any financial scheme 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 taking into account your particular 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, go to dsireusa.org. This is an unusual resource that has state-by-state intelligence on heaps of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And remember: When you finally decide to install a geothermal heating and cooling system in your home, call on the Knox County geothermal gurus at Cosby Heating and Cooling. We’ll do the job right – to help you start saving both energy and money right from the start.