Geothermal Tax Credits for Northern Virginia Residents Looking to save big money on the installation of that geothermal heating and cooling system you’ve long fancied? Well, this could be the time! 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 stay in effect from now through December 31, 2021.It covers 30% of allotted expenditures for systems placed in service between now and December 31, 2019. A measured step-down in credit value is set up for each successive year, so if you want the full 30% credit, you’ll have to move swiftly.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 regarded as “placed in service” on the date you, the homeowner, take occupancy of the home.The home does not have to be your chief residence. Your geothermal heat pump has to comply with federal ENERGY STAR criteria.To get the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695. For more specifics, see our blog as well as this WaterFurnace®-created handout, Understanding the Federal Incentives for Geothermal Heat Pumps. Even though we at Renewable Energy Solutions would like to see you purchase a geothermal heating and cooling system for your Northern Virginia home, we cannot legally support any financial strategy for doing so. We can, however, recommend that you seek out an area tax professional. He or she can educate you on how best to take advantage of geothermal tax credits in light of your singular financial situation. If you’d like to learn 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 offers state-by-state intelligence on heaps of policies and incentives designed to stimulate renewable energy and energy efficiency. And remember: When you’ve made up your mind to install a geothermal heating and cooling system in your home, go with the Northern Virginia geothermal experts at Renewable Energy Solutions. We’ll get the job done right – to help you start saving both energy and money right from the start.