Geothermal Tax Credits for Portland, OR Residents

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

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. Pertaining to the latter:

  • This credit will stay in effect 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 progressive reduction in credit value is set up for each year thereafter, so if you want the initial 30% credit, you’ll have to act swiftly.
  • Retrofit systems are accepted as “placed in service” when they’re totally installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are counted as “placed in service” on the day you, the homeowner, first settle into the home.
  • It’s not required that this home be your chief residence.
  • Your geothermal heat pump must meet 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 as well as this WaterFurnace®-developed circular, Understanding the Federal Incentives for Geothermal Heat Pumps.

While we at Total Energy Concepts would like to see you purchase a geothermal heating and cooling system for your Portland, OR home, we cannot legally sanction any financial plan for doing so. We can, however, recommend that you consult with a local tax professional. He or she can educate you on how best to take advantage of geothermal tax credits given your specific financial situation.

If you’re eager to find out more about what other energy-related tax incentives might apply to you at the federal, state, and local levels, go to dsireusa.org. This is a unique resource that offers state-by-state data on heaps of policies and incentives designed to advance  renewable energy and energy efficiency.

And don’t forget: When you’ve finally decided to install a geothermal heating and cooling system in your home, turn to the Portland, OR geothermal specialists at Total Energy Concepts. We’ll get the job done right – to help you start saving both energy and money right from the start.