Geothermal Tax Credits for Knoxville Residents Looking to save a ton of money on the installation of that geothermal heating and cooling system you’ve always wanted? Well, this could be your lucky day! 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 remains in effect from now through December 31, 2021.It offsets 30% of approved expenditures for systems placed in service between now and December 31, 2019. A progressive step-down in credit value is scheduled for each year following, so if you’re anxious to get the total 30% credit, you’ll have to act quickly.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 regarded as “placed in service” on the day you, the homeowner, take occupancy of the home.The home doesn’t have to be your main residence. Your geothermal heat pump has to comply with federal ENERGY STAR recommendations.To claim the Residential Energy Efficient Property Credit, you’ll have to finish and file IRS Form 5695. For additional details, read our blog as well as this WaterFurnace®-prepared handout, Understanding the Federal Incentives for Geothermal Heat Pumps. While we at Pioneer Heating and Air Conditioning, Inc. would love to see you install a geothermal heating and cooling system for your Knoxville home, we cannot legally endorse any financial tactics for doing so. We can, however, recommend that you employ the services of a nearby tax professional. He or she can instruct you on how best to take advantage of geothermal tax credits considering your individual financial situation. If you’d like 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 one-of-a-kind resource that has state-by-state intelligence on literally thousands of policies and incentives encouraging renewable energy and energy efficiency. And remember: When you finally decide to install a geothermal heating and cooling system in your home, see the Knoxville geothermal specialists at Pioneer Heating and Air Conditioning, Inc.. We’ll get the job done right – to help you start saving both energy and money right from the start.