Geothermal Tax Credits for Denver Residents

Looking to save lots of cash on the installation of that geothermal heating and cooling system you’ve always longed for? Well, this could be the time!

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. Pertaining to the latter:

  • This credit remains 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 subsequent year, so if you want the complete 30% credit, you’ll have to move quickly.
  • Retrofit systems are regarded 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 accounted “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 must fulfill all federal ENERGY STAR criteria.
  • To get the Residential Energy Efficient Property Credit, you must complete and file IRS Form 5695.

For additional information, see our blog.

Even though we at Denver Geothermal Heating would like to see you purchase a geothermal heating and cooling system for your Denver home, we cannot legally sanction any financial scheme for doing so. We can, however, recommend that you seek out an area tax professional. He or she can advise 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 dsireusa.org. This is a one-of-a-kind resource that provides state-by-state data on heaps of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And don’t forget: When you finally decide on installing a geothermal heating and cooling system in your home, turn to the Denver geothermal pros at Denver Geothermal Heating. We’ll do the job right – to help you start saving both energy and money right from the start.