Geothermal Tax Credits for Central New Jersey Residents Looking to save lots of cash on the installation of that geothermal heating and cooling system you’ve long wanted? 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 pays back 30% of approved expenditures for systems placed in service between now and December 31, 2019. A gradual reduction in credit value is set up for each year thereafter, so if you’re seeking the initial 30% credit, you’ll have to take action quickly.Retrofit systems are counted as “placed in service” when they’re totally installed and ready for use. Systems for newly built or newly renovated homes are accounted “placed in service” on the day you, the homeowner, take occupancy of the home.It’s not necessary that this home be your chief residence. Your geothermal heat pump is required to satisfy federal ENERGY STAR specifications.To get the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695. For more specifics, see our blog as well as this WaterFurnace®-produced piece, Understanding the Federal Incentives for Geothermal Heat Pumps. Even though we at CMS Geothermal would love to see you install a geothermal heating and cooling system for your Central New Jersey home, we cannot legally sanction any financial strategy for doing so. We can, however, recommend that you seek out an area tax professional. He or she can counsel you on how best to capitalize on geothermal tax credits considering your individual financial situation. If you’d like 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 unique resource that provides state-by-state information on literally thousands of policies and incentives designed to advance 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, depend on the Central New Jersey geothermal pros at CMS Geothermal. We’ll do the job right – to help you start saving both energy and money right from the start.