Side-by-side comparison of these two energy incentive programs. See which one offers better savings for your situation.
| Feature | Geothermal Heat Pump Tax Credit | IRA High-Efficiency Electric Home Rebate (HEEHR) |
|---|---|---|
| Type | Tax Credit | Rebate |
| Category | HVAC / Heat Pumps | Electrification |
| Amount | 30% | Up to $14,000 |
| Max Amount | No cap | $14,000 total |
| Level | Federal | Federal |
| Eligibility | Homeowners (new or existing homes, primary or secondary residence). | 100% rebate for <80% AMI, 50% rebate for 80-150% AMI. Each item has its own cap. |
| Applies To | Homeowners | Homeowners, renters |
| Location | Nationwide | Nationwide |
| How to Claim | File IRS Form 5695 (Residential Clean Energy Credit, not Home Improvement Credit). | Point-of-sale discount through participating retailers/contractors. State-administered. |
| Expiration | 30% through 2032, 26% in 2033, 22% in 2034 | Funds available until spent (through ~2031) |
30% tax credit for geothermal heat pump systems with no upper limit. Covers equipment and installation costs for ground-source heat pumps meeting ENERGY STAR requirements.
Official source →Point-of-sale rebates for individual electrification upgrades: heat pump ($8,000), heat pump water heater ($1,750), electric stove ($840), heat pump dryer ($840), electrical panel ($4,000), wiring ($2,500), insulation ($1,600).
Official source →