Geothermal Tax Credits for Lancaster Residents Looking to save big time on the installation of that geothermal heating and cooling system you’ve long fancied? Well, this could be your opportunity! The Bipartisan Budget Act of 2018, passed 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 remains in effect from now through December 31, 2021.It covers 30% of designated expenditures for systems placed in service between now and December 31, 2019. A progressive decrease in credit value is set up for each year following, so if you’d like the total 30% credit, you’ll have to take action swiftly.Retrofit systems are judged “placed in service” when they’re fully installed and ready for use. Systems for newly constru|ere]36]cted or newly renovated homes are accepted as “placed in service” at the time you, the homeowner, first settle into the home.The home doesn’t have to 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’ll have to complete and file IRS Form 5695. For more specifics, check out our blog. While it’s certainly true that we at Gochnauer at Home would like to see you purchase a geothermal heating and cooling system for your Lancaster home, we cannot legally suggest any financial strategy for doing so. We can, however, recommend that you get together with an area tax professional. He or she can educate you on how best to profit from geothermal tax credits given your unique financial situation. If you want to learn more about what other energy-related tax incentives might be there for you at the federal, state, and local levels, go to dsireusa.org. This is an unusual resource that has state-by-state intelligence on scores of policies and incentives designed to advance renewable energy and energy efficiency. And keep in mind: When you’re ready to install a geothermal heating and cooling system in your home, see the Lancaster geothermal experts at Gochnauer at Home. We’ll do the job right – to help you start saving both energy and money right from the start.