Geothermal Heat Pump Incentives

30% Tax Credit

The U.S. federal government offers a 30% tax credit for residential geothermal systems, as well as a 30% tax credit for commercial geothermal systems.

As part of Inflation Reduction Act, section 25D of the Internal Revenue Code, projects utilizing ENERGY STAR qualified geothermal heat pumps receive a 30% U.S. tax credit for eligible system costs, including the heat pump, ground loop field, etc. Check with your local installer and tax professional for more details.

US Incentives

United States Rebates and Incentives

For new construction or existing homes owned by the taxpayer, there's a U.S. federal tax credit available based on eligible system costs, which includes installation costs. The tax credit also applies to geothermal installations replacing an old geothermal system.

Is there any geothermal equipment not covered by the tax credit? Portions like ductwork are not included. Find out more details to this question and more below by downloading our Guide to U.S. Residential Geothermal Tax Incentives.

To claim the U.S. Federal Tax Credit, download IRS Form 5695. We recommend talking with a tax professional as you navigate this credit.

Guide to U.S.Residential Geothermal Tax Incentives
Fill out the form to receive our free Guide to U.S.Residential Geothermal Tax Incentives.
Rebates & Incentives

Local Incentives

States, local municipalities, and utilities offer rebates in addition to federal incentives, low interest loans, or other incentives to support your choice in geothermal heating and cooling.

For more information about what’s available in your area, contact us or visit DSIRE USA for a full list of state and local geothermal heat pump incentives.

Canadian Rebates and Incentives

Canadian provinces and territories also recognize the benefits of geothermal. The Natural Resources Canada website offers a full list of energy-efficient incentives for major utilities and Canadian municipalities to help maximize your savings.

Certificates for the U.S. Residential Geothermal Tax Credit

If you took advantage of the U.S. federal residential geothermal tax credit by purchasing an ENERGY STAR qualified geothermal system, you can download the applicable year’s certificate for your records. We suggest talking with a tax professional when claiming your tax credit and not relying entirely on the certificates below.

Tetco Geothermal Systems
by Enertech Global, LLC
2506 S Elm Street
Greenville, IL 62246