Geothermal Tax Credits for Scranton Residents

Looking to save lots of dough on the installation of that geothermal heating and cooling system you’ve always wanted? Well, this could be your lucky day!

The Bipartisan Budget Act of 2018, ratified 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 stay in effect from now through December 31, 2021.
  • It offsets 30% of allotted expenditures for systems placed in service between now and December 31, 2019.
  • A gradual decrease in credit value is set up for each year thereafter, so if you’re anxious to get the initial 30% credit, you’ll have to act right away.
  • 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 accounted “placed in service” at the time you, the homeowner, take occupancy of the home.
  • It’s not necessary that this home be your main residence.
  • Your geothermal heat pump has to meet federal ENERGY STAR criteria.
  • To claim the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695.

For more specifics, read our blog.

Even though we at Jim Lamberti Contracting Services, LLC would like to see you install a geothermal heating and cooling system for your Scranton home, we cannot legally lend our approval to any financial plan for doing so. We can, however, recommend that you consult with 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 one-of-a-kind resource that has state-by-state intelligence on heaps 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, go with the Scranton geothermal professionals at Jim Lamberti Contracting Services, LLC. We’ll get the job done right – to help you start saving both energy and money right from the start.