Geothermal Tax Credits for Central New Jersey Residents Looking to save big time on the installation of that geothermal heating and cooling system you’ve long dreamed about? Well, this could be your chance! The Bipartisan Budget Act of 2018, ratified 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 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 measured reduction in credit value is set up for each succeeding year, so if you’re after the initial 30% credit, you’ll have to act quickly.Retrofit systems are accepted as “placed in service” when they’re completely 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 inhabit the home.The home needn’t be your main residence. Your geothermal heat pump must fulfill all federal ENERGY STAR specifications.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®-produced piece, Understanding the Federal Incentives for Geothermal Heat Pumps. Though it’s a given that we at ABLEnvironmental would love to see you install a geothermal heating and cooling system for your Central New Jersey home, we cannot legally endorse any financial plan for doing so. We can, however, recommend that you consult with a local tax professional. He or she can counsel you on how best to capitalize on geothermal tax credits taking into account your particular financial situation. If you’d like to find out 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 unique resource that offers state-by-state facts on untold numbers of policies and incentives championing renewable energy and energy efficiency. And keep in mind: When you’ve made up your mind to install a geothermal heating and cooling system in your home, see the Central New Jersey geothermal pros at ABLEnvironmental. We’ll get the job done right – to help you start saving both energy and money right from the start.