Geothermal Tax Credits for Alaska Residents Looking to save big bucks 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. As far as the latter are concerned: This credit remains in effect from now through December 31, 2021.It offsets 30% of allotted expenditures for systems placed in service between now and December 31, 2019. A measured decrease in credit value is set up for each year following, so if you’re seeking the initial 30% credit, you’ll have to act quickly.Retrofit systems are accepted as “placed in service” when they’re fully installed and ready for use. Systems for newly constru|ere]36]cted or newly renovated homes are counted as “placed in service” on the date you, the homeowner, take occupancy of the home.The home does not have to be your chief residence. Your geothermal heat pump has to fulfill all federal ENERGY STAR criteria.To receive the Residential Energy Efficient Property Credit, you should fill out and file IRS Form 5695. For more specifics, read our blog. While it’s certainly true that we at Energy Efficiency Associates would like to see you purchase a geothermal heating and cooling system for your Alaska home, we cannot legally support any financial scheme for doing so. We can, however, recommend that you seek out a local tax professional. He or she can instruct you on how best to take advantage of geothermal tax credits given your singular financial situation. If you want to find out more about what other energy-related tax incentives might be available to you at the federal, state, and local levels, visit dsireusa.org. This is a one-of-a-kind resource that offers state-by-state facts on 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, call on the Alaska geothermal gurus at Energy Efficiency Associates. We’ll do the job right – to help you start saving both energy and money right from the start.