Geothermal Tax Credits for Western Montana Residents

Looking for big savings 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, signed 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 swiftly.
  • Retrofit systems are counted 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 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 criteria.
  • To claim the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695.

For further information, see our blog as well as this WaterFurnace®-prepared circular, Understanding the Federal Incentives for Geothermal Heat Pumps.

While we at Ground Source Systems, Inc. would be delighted to see you get a geothermal heating and cooling system for your Western Montana home, we cannot legally support any financial plan for doing so. We can, however, recommend that you seek out an area tax professional. He or she can direct you on how best to capitalize on geothermal tax credits taking into account your particular financial situation.

If you want to learn more about what other energy-related tax incentives might be applicable to you at the federal, state, and local levels, check out This is a unique resource that provides state-by-state facts on untold numbers of policies and incentives designed to stimulate  renewable energy and energy efficiency.

And bear in mind: When you finally decide on installing a geothermal heating and cooling system in your home, see the Western Montana geothermal gurus at Ground Source Systems, Inc.. We’ll do the job right – to help you start saving both energy and money right from the start.