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 dreamed about? 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 fast.Retrofit systems are counted as “placed in service” when they’re fully installed and ready for use. Systems for newly constru|ere]36]cted or newly renovated homes are regarded as “placed in service” on the day 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’ll need to 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 be delighted 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 employ the services of 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 be applicable 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 bear in mind: When you’re ready to install a geothermal heating and cooling system in your home, see 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.