Resource Details

Energy, Sustainability

Geothermal Heat Pumps Tax Credit

The EPA and DOE provide a tax credit for geothermal heat properties, equipment, and expenditure. A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. For example, claiming a $1,000 federal tax credit reduces your federal income taxes due by $1,000.

The following Residential Clean Energy Tax Credit amounts apply for the prescribed periods:

30% for property placed in service after December 31, 2016, and before January 1, 2020
26% for property placed in service after December 31, 2019, and before January 1, 2022
30% for property placed in service after December 31, 2021, and before January 1, 2033
26% for property placed in service after December 31, 2032, and before January 1, 2034
22% for property placed in service after December 31, 2033, and before January 1, 2035

(last updated 2/3/23)

Eligibility

Eligible products include:
Qualified geothermal heat pump properties, or equipment which (1) uses the ground or ground water as a thermal energy source (to heat), or as a thermal energy sink (to cool) a home, and (2) is ENERGY STAR certified.

Qualified geothermal heat pump property expenditures, or expenditures for qualified geothermal heat pump property installed on or in connection with the taxpayer's residence.

sponsor image

U.S. Environmental Protection Agency

The mission of EPA is to protect human health and the environment.

Contact

Rosemary Enobakhare

More Information

Related Resources

  • Food & Beverage, Sustainability

    Emergency Community Water Assistance Grants

    U.S. Department of Agriculture

    This program helps eligible communities prepare, or recover from, an emergency that threatens the availability of safe, reliable drinking water.

  • Agriculture, Start-Up & Entrepreneur, Sustainability, Veterans

    Transition Incentives Program (TIP)

    U.S. Department of Agriculture

    The Transition Incentives Program provides land owners or operators with two additional annual rental payments on land enrolled in expiring Conservation Reserve Program (CRP) contracts, on the condition they sell or rent this land to a beginning farmer or rancher or to a socially disadvantaged group.

  • Agriculture, Arts & Culture, Broadband & Internet, Business, Economic Development, Energy, Housing, Start-Up & Entrepreneur, Sustainability, Technology, Veterans, Workforce

    Resource Guide for Rural Entrepreneurs

    U.S. Department of Agriculture

    This multimedia guide provides resources for start-ups and already-established rural businesses.