Tax Credit Timeline

30% tax credit for systems placed in service from 2022-2032

26% tax credit for systems placed in service in 2033

22% tax credit for systems placed in service in 2034

If I installed a qualified geothermal heat pump in my existing home, can I claim the tax credit?

Yes, you can! The tax credit applies for new and existing homes installing a qualified geothermal system.

Can the geothermal heat pump tax credit combine with other energy efficient tax credits like solar?

The tax credit can be used in conjunction with other energy efficiency upgrades, like solar and wind tax credits and can be used to offset Alternative Minimum Tax (AMT). There isn't a cap or limit on the amount of times the credit can be claimed. If you have more than one home, then the credit could apply for each residence where geothermal equipment (and other energy-efficient upgrades) is installed.

Is a geothermal heat pump worth the investment without a tax credit?

Absolutely! The tax credit simply lowers the upfront cost of a geothermal heat pump. The benefits, like cost-savings on energy bills, fewer maintenance needs, improved home comfort, and more exist with or without the tax credit. Additionally, there are flexible payment plans available to assist with the upfront cost. When compared to the costs associated with a traditional HVAC system, many homeowners see more money in their wallet within the first month of install – that's with the monthly payment and energy costs combined!