Federal Tax Credits: Geothermal Heat Pumps

Geothermal heat pumps are similar to ordinary heat pumps, but use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water.  Because they use the earth's natural heat, they are among the most efficient and comfortable heating and cooling technologies currently available.

Requirements

Must meet the requirements of the ENERGY STAR program which are in effect at the time of the expenditure.  Tax credits includes installation costs.

Definitions: 

• COP (Coefficient Of Performance) - of a heat pump is the ratio of the change in heat at the "output" (the water reservoir of interest) to the supplied work.
• EER (Energy Efficient Ratio) - The higher the EER rating, the more energy efficient the equipment is. This can result in lower energy costs. This DOE site can show how to calculate potential energy costs savings of a more efficient unit.

More Information

• How to apply
• Geothermal Heat Pump FAQ
• All ENERGY STAR geo-thermal heat pumps qualify for the tax credit
• What about water-to-water geothermal heat pumps?

Is there a tax credit for geothermal heat pumps?

Yes, geothermal heat pumps can qualify for a tax credit