Geothermal Tax Credits for Southwest Michigan Residents Looking to save big money 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 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 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 gradual decrease in credit value is scheduled for each year following, so if you’d like the full 30% credit, you’ll have to act fast.Retrofit systems are considered “placed in service” when they’re totally installed and ready for use. Systems for newly built or newly renovated homes are accepted as “placed in service” on the date you, the homeowner, take occupancy of the home.It’s not a requirement that this home be your primary place of residence. Your geothermal heat pump must meet federal ENERGY STAR criteria.To get the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695. For more specifics, see our blog as well as this WaterFurnace®-generated piece, Understanding the Federal Incentives for Geothermal Heat Pumps. Though we at WaterFurnace Michiana would love to see you purchase a geothermal heating and cooling system for your Southwest Michigan home, we cannot legally prescribe 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 profit from geothermal tax credits in light of your individual 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 an unusual resource that offers state-by-state information on untold numbers of policies and incentives promoting renewable energy and energy efficiency. And remember: When you’re ready to install a geothermal heating and cooling system in your home, depend on the Southwest Michigan geothermal professionals at WaterFurnace Michiana. We’ll get the job done right – to help you start saving both energy and money right from the start.