Geothermal Tax Credits for Denver Residents

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

The Bipartisan Budget Act of 2018, approved 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 pays back 30% of specified expenditures for systems placed in service between now and December 31, 2019.
  • A measured step-down in credit value is scheduled for each year following, so if you’d like the complete 30% credit, you’ll have to move fast.
  • Retrofit systems are considered “placed in service” when they’re fully installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are counted as “placed in service” on the date you, the homeowner, first occupy the home.
  • The home needn’t be your main residence.
  • Your geothermal heat pump has to fulfill all federal ENERGY STAR criteria.
  • To claim the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695.

For more specifics, see our blog.

Even though we at Denver Geothermal Heating would love to see you install a geothermal heating and cooling system for your Denver home, we cannot legally sanction any financial tactics for doing so. We can, however, recommend that you employ the services of an area tax professional. He or she can counsel you on how best to profit from geothermal tax credits in light of your singular financial situation.

If you’d like to discover more about what other energy-related tax incentives might be available to you at the federal, state, and local levels, visit This is a one-of-a-kind resource that provides state-by-state facts on heaps of policies and incentives encouraging  renewable energy and energy efficiency.

And bear in mind: When you’ve finally decided to install a geothermal heating and cooling system in your home, see the Denver geothermal gurus at Denver Geothermal Heating. We’ll do the job right – to help you start saving both energy and money right from the start.