Geothermal Tax Credits for Seattle 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 applies from now through December 31, 2021.It covers 30% of allotted expenditures for systems placed in service between now and December 31, 2019. A gradual reduction in credit value is set up for each subsequent year, so if you’d like the full 30% credit, you’ll have to act fast.Retrofit systems are judged “placed in service” when they’re completely installed and ready for use. Systems for newly built or newly renovated homes are accepted as “placed in service” at the time you, the homeowner, first occupy the home.It’s not necessary that this home be your main residence. Your geothermal heat pump must meet federal ENERGY STAR recommendations.To claim the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695. For more specifics, check out our blog as well as this WaterFurnace®-prepared bulletin, Understanding the Federal Incentives for Geothermal Heat Pumps. Even though we at Vaughn Mechanical would love to see you install a geothermal heating and cooling system for your Seattle home, we cannot legally lend our approval to any financial strategy for doing so. We can, however, recommend that you employ the services of a nearby tax professional. He or she can direct you on how best to take advantage of geothermal tax credits given your specific financial situation. If you want 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 provides state-by-state facts on thousands of policies and incentives encouraging renewable energy and energy efficiency. And keep in mind: When you finally decide on installing a geothermal heating and cooling system in your home, depend on the Seattle geothermal pros at Vaughn Mechanical. We’ll do the job right – to help you start saving both energy and money right from the start.