Geothermal Tax Credits for Panama City Residents

Looking to save big time on the installation of that geothermal heating and cooling system you’ve long wanted? Well, this could be the time!

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 be in effect from now through December 31, 2021.
  • It rebates 30% of designated expenditures for systems placed in service between now and December 31, 2019.
  • A progressive step-down in credit value is set up for each succeeding year, so if you’re after the complete 30% credit, you’ll have to act quickly.
  • Retrofit systems are regarded 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 counted as “placed in service” at the time you, the homeowner, take occupancy of the home.
  • It’s not necessary that this home be your chief residence.
  • Your geothermal heat pump must fulfill all federal ENERGY STAR specifications.
  • To claim the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695.

For additional details, take a look at our blog as well as this WaterFurnace®-created piece, Understanding the Federal Incentives for Geothermal Heat Pumps.

Even though we at Ridge Heating and Air would like to see you purchase a geothermal heating and cooling system for your Panama City home, we cannot legally support any financial plan for doing so. We can, however, recommend that you seek the services of an area tax professional. He or she can advise you on how best to take advantage of geothermal tax credits taking into account your particular 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, go to dsireusa.org. This is an unusual resource that’ll give you state-by-state data on thousands of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And remember: When you’ve committed yourself to install a geothermal heating and cooling system in your home, go with the Panama City geothermal experts at Ridge Heating and Air. We’ll get the job done right – to help you start saving both energy and money right from the start.