Geothermal Tax Credits for Western Montana Residents

Looking to save big bucks on the installation of that geothermal heating and cooling system you’ve long fancied? Well, this could be the time!

The Bipartisan Budget Act of 2018, passed in February 2018, reinstates the Residential Energy Efficient Property Credit for fuel cells, small wind systems … and geothermal heat pumps. Regarding the latter:

  • This credit remains in effect from now through December 31, 2021.
  • It rebates 30% of allotted expenditures for systems placed in service between now and December 31, 2019.
  • A gradual step-down in credit value is set up for each subsequent year, so if you want the full 30% credit, you’ll have to move right away.
  • 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 considered “placed in service” at the time you, the homeowner, first inhabit the home.
  • It’s not required that this home be your chief residence.
  • Your geothermal heat pump has to comply with federal ENERGY STAR specifications.
  • To claim the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695.

For further information, see our blog.

Though it’s a given that we at Ground Source Systems, Inc. would love to see you install a geothermal heating and cooling system for your Western Montana home, we cannot legally support any financial scheme 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 unique financial situation.

If you’re eager to learn more about what other energy-related tax incentives might apply to you at the federal, state, and local levels, look at This is a unique resource that has state-by-state information on thousands of policies and incentives promoting  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 Western Montana geothermal specialists at Ground Source Systems, Inc.. We’ll do the job right – to help you start saving both energy and money right from the start.