In August 2022, the tax credit for geothermal heat pump installations was extended through 2034. Geothermal equipment that uses the stored solar energy from the ground for heating and cooling and that meets ENERGY STAR requirements at the time of installation are eligible. The credit has no limit and there's no limitation on the number of times the credit can be claimed.
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!
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.
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.