Tax Credits & Incentives
Learn how you can save money by utilizing tax credits from Geothermal Heating & Cooling.
Learn about Geothermal Tax Credits!
In August 2022, the tax credit for geothermal heat pump installations was extended through 2034. Geothermal equipment that utilizes energy from the ground for heating and cooling and meets ENERGY STAR requirements at the time of installation is eligible. The credit has no limit, and there's no limitation on the number of times the credit can be claimed.
US Tax Credits Through 2034
The energy tax credit can be utilized alongside solar and wind credits, in addition to energy efficiency upgrade credits. a 30% federal tax credit for ground source heat pump installations has been extended until December 31, 2032. This incentive will decrease to 26% for systems installed in 2033, and further to 22% in 2034. Therefore, it's advisable to act swiftly to maximize your savings on installation!
Why Choose Geothermal
Installing a geo system is a wise financial choice, providing a return on investment. Most owners save more on monthly bills than their financing costs, recouping the extra investment compared to traditional systems within a few years. Many also see a 10 - 20% return on investment over the system's lifetime.
Check for Local Incentives
In addition to the federal tax credit, various state, local, and utility incentives might be accessible in your region, providing additional savings on the installation of a geothermal heat pump. Visit the Database of State Incentives for Renewables & Efficiency (DSIRE) website to discover the policies and incentives in your area.
Earn Points Towards LEED Status
By harnessing the earth’s relatively constant subsurface temperature through a ground-source heat pump, a geothermal HVAC system can reduce on-site energy consumption by 30–45% compared to conventional heating and cooling. Those efficiency gains feed directly into LEED’s Energy & Atmosphere category: under Optimize Energy Performance you can earn up to 18 points by demonstrating measurable energy savings, and the electricity offset by your geothermal installation qualifies for the Renewable Energy Production credit (up to 3 points). In many regions, deploying geothermal also ticks Regional Priority credits for low-carbon technologies and can even score Innovation points if you pioneer advanced ground-loop designs or system controls.