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Eligible: Individuals

Apply by Dec 31, 2035

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Geothermal Heat Pump Tax Credit

From Internal Revenue Service (IRS)

Tax credit for installation of a geothermal heat pump that 1) uses the ground or ground water as an energy source to heat or cool a home and is ENERGY STAR certified. 30% of cost.

  • Overview

    • Type

      Tax Incentive

    • Title

      Geothermal Heat Pump Tax Credit

    • Source

      Internal Revenue Service (IRS)

    • Federal or State

      Federal

    • Award Range

  • Eligibility

    • Audience

      Individuals

    • Sector

      Energy Efficiency, Renewable Energy, Residential

    • Activity

      Efficiency Improvements, Equipment Purchase/Lease, Financial Assistance

    • Eligibility

      An expenditure for qualified geothermal heat pump equipment installed on or in connection with a taxpayer’s residence. Existing and new homes qualify. Principal and second homes qualify. Rentals do not qualify.

    • Location

      National

  • Application Process

    • Application Link

      energystar.gov

    • Pre-Application?

      No

    • Requirements

      Credit reduced to 26% for property placed in service in 2033 and 22% in 2034

    • Disbursement Method

      Credit on federal taxes

  • Important Dates

    • Application Open Date

      Dec 31, 2021

    • Application Close Date

      Dec 31, 2035

    • Period of Performance Start

      Dec 31, 2022

    • Period of Performance End

      Jan 1, 2033

  • Resources & Contacts

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