Is there a tax credit for geothermal heat pumps?

Yes, geothermal heat pumps can qualify for a tax credit

How much:

30% of the cost (including installation/labor costs), with no upper limit.

Timing:

Tax credit in effect through 2016. Must be installed in a home you own and use as a residence (no rentals, but second homes qualify) between January 1, 2009 and December 31, 2016.

Details:

Must meet the requirements of the ENERGY STAR program which are in effect at the time that the expenditure for such equipment is made.

What parts of a geothermal heat pump are covered by the tax credit?

As of December 1, 2009, geothermal heat pumps are no longer required to provide some or all of the domestic water heating.

As of December 1, 2009, water-to-water geothermal heat pumps can qualify for the tax credit.

Find qualified models:

All ENERGY STAR qualified geothermal heat pumps are eligible for the tax credit:

How to apply:

File Tax Form 5695 with your tax return.

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Topic Information
  • Topic #: 23002-19320
  • Date Created: 8/4/2009
  • Last Modified Since: 1/28/2013
  • Viewed: 98895
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