Geothermal Tax Credits for Western Montana Residents

Looking to save lots of cash on the installation of that geothermal heating and cooling system you’ve long dreamed of? 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 will stay 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 decrease 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 considered “placed in service” when they’re fully installed and ready for use.
  • Systems for newly built or newly renovated homes are judged “placed in service” at the time you, the homeowner, first inhabit the home.
  • It’s not a requirement 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’ll have to fill out and file IRS Form 5695.

For further information, see our blog.

While it’s certainly true that we at Ground Source Systems, Inc. would be delighted to see you install a geothermal heating and cooling system for your Western Montana home, we cannot legally endorse any financial tactics for doing so. We can, however, recommend that you employ the services of 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 learn more about what other energy-related tax incentives might apply to you at the federal, state, and local levels, go to This is a unique resource that has state-by-state information on literally thousands of policies and incentives advancing  renewable energy and energy efficiency.

And don’t forget: When you’re ready to install a geothermal heating and cooling system in your home, go with the Western Montana geothermal experts at Ground Source Systems, Inc.. We’ll do the job right – to help you start saving both energy and money right from the start.