Geothermal Tax Credits for Michigan Residents Looking to save a ton of money on the installation of that geothermal heating and cooling system you’ve always longed for? Well, this could be your opportunity! 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 allotted expenditures for systems placed in service between now and December 31, 2019. A progressive reduction in credit value is set up for each succeeding year, so if you’d like the initial 30% credit, you’ll have to act fast.Retrofit systems are considered “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” at the time you, the homeowner, take occupancy of the home.The home doesn’t have to be your main residence. Your geothermal heat pump has to meet federal ENERGY STAR specifications.To claim the Residential Energy Efficient Property Credit, you’ll need to fill out and file IRS Form 5695. For more specifics, check out our blog as well as this WaterFurnace®-produced bulletin, Understanding the Federal Incentives for Geothermal Heat Pumps. Even though we at Kozy Home Heating & Cooling (aka AllTemp Comfort) would love to see you get a geothermal heating and cooling system for your Michigan home, we cannot legally suggest any financial tactics 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 in light of your unique 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, look at dsireusa.org. This is an unusual resource that’ll give you state-by-state information on thousands of policies and incentives encouraging renewable energy and energy efficiency. And remember: When you’ve committed yourself to install a geothermal heating and cooling system in your home, depend on the Michigan geothermal gurus at Kozy Home Heating & Cooling (aka AllTemp Comfort). We’ll do the job right – to help you start saving both energy and money right from the start.