Geothermal Tax Credits for Las Cruces Residents

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

The Bipartisan Budget Act of 2018, approved 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 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 scheduled for each year following, so if you’re seeking the complete 30% credit, you’ll have to act fast.
  • Retrofit systems are counted as “placed in service” when they’re totally installed and ready for use.
  • Systems for newly built or newly renovated homes are judged “placed in service” at the time you, the homeowner, take occupancy of the home.
  • The home needn’t be your main residence.
  • Your geothermal heat pump is required to fulfill all federal ENERGY STAR recommendations.
  • To get the Residential Energy Efficient Property Credit, you should complete and file IRS Form 5695.

For additional information, take a look at our blog.

Even though we at Sun City Plumbing & Heating would like to see you purchase a geothermal heating and cooling system for your Las Cruces home, we cannot legally support any financial scheme for doing so. We can, however, recommend that you employ the services of an area tax professional. He or she can advise 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 there for you at the federal, state, and local levels, look at This is a one-of-a-kind resource that’ll give you state-by-state facts on untold numbers of policies and incentives designed to advance  renewable energy and energy efficiency.

And bear in mind: When you’ve made up your mind to install a geothermal heating and cooling system in your home, call on the Las Cruces geothermal pros at Sun City Plumbing & Heating. We’ll do the job right – to help you start saving both energy and money right from the start.