Geothermal federal tax credits reinstated

If you purchased or replace a geothermal heating and cooling system in 2017, be sure to read this before filing your federal income tax.  Federal tax credits for geothermal heat pumps were recently reinstated by the federal government. Residential consumers are eligible for a 30 percent federal tax credit for installing a geothermal heat pump system in their home. The reinstated tax credits are retroactive to Jan. 1, 2017, meaning that anyone who installed a geothermal system in their home in the past 14 months now qualifies for the tax credit. The tax credits are extended through Jan. 1, 2022, through a phase out plan in which the credit is reduced to 22 percent before ending.

Be sure to discuss this with your tax professional.