Geothermal Tax Credits for Charleston Residents Looking to save lots of money on the installation of that geothermal heating and cooling system you’ve always dreamed about? Well, this could be your chance! 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 will be in effect 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 progressive decrease in credit value is scheduled for each succeeding year, so if you’re anxious to get the total 30% credit, you’ll have to act right away.Retrofit systems are accounted “placed in service” when they’re fully installed and ready for use. Systems for newly built or newly renovated homes are accounted “placed in service” on the date you, the homeowner, first inhabit the home.The home does not have to be your chief residence. Your geothermal heat pump is required to meet federal ENERGY STAR specifications.To get the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695. For more specifics, check out our blog as well as this WaterFurnace®-generated handout, Understanding the Federal Incentives for Geothermal Heat Pumps. Even though we at Custom Climate Heating & Air would like to see you purchase a geothermal heating and cooling system for your Charleston home, we cannot legally endorse any financial scheme for doing so. We can, however, recommend that you employ the services of an area tax professional. He or she can direct you on how best to capitalize on geothermal tax credits in light of your singular 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, check out dsireusa.org. This is a unique resource that provides state-by-state information on scores of policies and incentives designed to advance renewable energy and energy efficiency. And remember: When you finally decide on installing a geothermal heating and cooling system in your home, go with the Charleston geothermal specialists at Custom Climate Heating & Air. We’ll do the job right – to help you start saving both energy and money right from the start.