Geothermal Tax Credits for Long Island Residents

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

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. Relative to the latter:

  • This credit will stay in effect from now through December 31, 2021.
  • It rebates 30% of approved 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’d like the full 30% credit, you’ll have to act fast.
  • Retrofit systems are counted as “placed in service” when they’re completely installed and ready for use.
  • Systems for newly built or newly renovated homes are counted as “placed in service” at the time you, the homeowner, first settle into the home.
  • The home needn’t be your chief residence.
  • Your geothermal heat pump must meet federal ENERGY STAR recommendations.
  • To receive the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695.

For more specifics, review our blog as well as this WaterFurnace®-developed bulletin, Understanding the Federal Incentives for Geothermal Heat Pumps.

Even though we at ZBF Geothermal would love to see you install a geothermal heating and cooling system for your Long Island home, we cannot legally lend our approval to any financial tactics for doing so. We can, however, recommend that you speak with a local tax professional. He or she can advise you on how best to take advantage of geothermal tax credits taking into account your individual financial situation.

If you want to learn more about what other energy-related tax incentives might be applicable to you at the federal, state, and local levels, visit dsireusa.org. This is a one-of-a-kind resource that’ll give you state-by-state facts on thousands of policies and incentives championing  renewable energy and energy efficiency.

And remember: When you’ve committed yourself to install a geothermal heating and cooling system in your home, go with the Long Island geothermal gurus at ZBF Geothermal. We’ll get the job done right – to help you start saving both energy and money right from the start.