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Incentives and credits make geothermal even more affordable.

There are many local, state and federal incentives available for geothermal heat pump installations.

In some areas, your local utility company may offer rebates or other incentives. Some states offer tax incentives, and the Federal Government offers newly legislated tax incentives.  Incentives for your local area may be found by contacting your installing dealer or your utility company. Please check with a qualified tax advisor, or the IRS for specific qualifications and information.

Federal Tax Credit-Residential Customers:

  • Maximum Credit:  One time credit of 30% for qualified expenditures for a system that serves a dwelling located in the United States and used as a residence by the taxpayer. Expenditures include labor costs for onsite preparation, system installation, and piping or wiring to interconnect a system to the home.
  • Qualifying Systems:  Geothermal system must meet or exceed Energy Star requirements that are in effect at the time of installation and be installed after January 1, 2009
  • Time Frame:  This credit is available until December 31, 2016. If the federal tax credit exceeds tax liability, the excess amount may be carried foward until 2016.
  • Documentation Required:  No proof of purchase will be required; however, in case of an audit, owners are encouraged to keep a detailed invoice of their purchase on file. The contractor who sold and installed the product should list the purchase as a "Geothermal Heat Pump" on the invoice and that it "Exceeds requirements of Energy Star program currently in effect".

Federal Tax Credit-Commercial Customers:

There is a 10% tax credit, with no maximum available for commercial installations.  There are many other incentives in place for commercial installations, depending on location, and type of system, some are very attractive and greatly reduce the cost of a geothermal heat pump system.

AHRI Reference Number: 

Click the link below to connect to the AHRI website..                                   

Download our Manufacturer Tax Credit Certificate

Download our Tax Credit Brochure

USDA Rural Development:

The Rural Energy for America Program (REAP) provides assistance to agricultural producers and rural small businesses to complete a variety of projects. Offering both loan guarantees and grants, the REAP program helps eligible applicants install renewable energy systems such as solar panels or anaerobic digesters, make energy efficiency improvements such as installing irrigation pumps or replacing ventilation systems, and conduct energy audits and feasibility studies. 

Click here to learn more about the USDA REAP program.