Federal Incentives:

All Energy Star qualified residential geothermal heat pumps qualify for a Federal tax credit equal to 30% of the total system cost.

There is no limit to the maximum credit amount for 2009 and beyond.  The tax credit can be used to offset AMT tax, can be rolled into subsequent years, and can be combined with solar, wind, and energy efficiency upgrade credits.

Homes, apartments, condominiums, and mobile homes located in the USA qualify and the property does not have to be your primary residence.  Enacted in 2008, the tax credit is in effect until December 31, 2016.

Use IRS Form 5695 to claim your residential energy efficient property credit.

Commercial projects qualify for a 10% tax credit and 5-year MACRS accelerated depreciation.

Click here for additional federal tax incentives for renewable energy.

State Incentives:

Many states provide additional tax incentives, rebates, or low interest loans to encourage the installation of geothermal heat pumps.

Click here to check for state incentives in your area.

Utility Incentives:

It is important to check with your local electric utility company to see what rebates, discounts, or financing programs are available for geothermal installations.