US Incentives

30% Residential Renewable Tax Credit (not deduction)

Geothermal heat pumps placed in service in 2008: $2,000 max
Geothermal heat pumps placed in service after 12/31/2008: no maximum

Under the Energy Policy Act, the U.S. Government offers a personal tax credit on the installation of a geothermal heat pump that either meets or exceeds the EnergyStar program requirements. While systems installed in 2008 are subject to a $2,000 cap on the credit, units installed from 2009 through 2016 can take advantage of the full credit. The incentive for home and commercial building owners who install geothermal heating and cooling systems through H.R. 1424 is a tax credit of 30% of the total investment for homeowners who install residential ground loop or ground water geothermal heat pumps and 10% of the total investment for commercial building owners for a commercial system installation.

For more information contact Public Information at the Internal Revenue Service at or by phone at 1.800.829.1040. Additional information also available at the DSIRE website.

All GeoSmart heatpumps are Energy Star rated.


Database of State incentives for Renewables & Efficiency (DSIRE) is a comprehensive source of information on state, local, utility, and federal incentives and policies that promote renewable energy and energy efficiency. Established in 1995 and funded by the U.S. Department of Energy, DSIRE is an ongoing project of the N.C. Solar Center and the Interstate Renewable Energy Council.