SAVE MORE WITH GEOTHERMAL

Guide to Federal Tax Incentives for Residential Geothermal Heat Pumps

Save 30% On Your Geothermal Heat Pump System!

In addition to experiencing the cost saving efficiency of a geothermal heating and cooling solution, there are now immediate cost savings available to make your investment more affordable. Homeowners can now receive 30% on the installation of new geothermal systems with federal tax credits offered because of the Inflation Reduction Act legislation passed in August of 2022.

Learn how to make the Inflation Reduction Act work for you and your wallet.

Claiming the Credit

IRS Form 5695 is used to claim the Residential Energy Credit. Links to the form and pertinent reference documents are below:

About Form 5695
IRS Form 5695 Instructions
IRS Form 5695
Manufacturer’s Certification of Geothermal Heat Pump Property Compliance (ClimateMaster)

Geothermal Tax Credit Extended: 30% through 2032, 26% through 2033, 22% through 2034

State Incentives. Local Rebates. Save Even More.

With national efforts for decarbonization and electrification, many states are offering tax credits to homeowners in addition to the federal IRA incentives. Also, because of the increased efficiency of geothermal systems and the reduced demand on power grids, many utility companies are rewarding their customers with significant rebates on their electric bill.

Visit the DSIRE Website (link below) shown below to find out if there are state and local residential energy tax credits available in your area.

NOTE: Once you reach the DSIRE Website, simply select “Geothermal Heat Pumps” from the “Technology” drop down menu and then click on your state to view all the programs or energy credits available for geothermal heat pumps in your state.