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 Home Efficiency Rebate (HOMES) |
|---|---|---|
| Type | Tax Credit | Rebate |
| Category | HVAC / Heat Pumps | Whole Home |
| Amount | 30% | Up to $8,000 |
| Max Amount | No cap | $8,000 |
| Level | Federal | Federal |
| Eligibility | Homeowners (new or existing homes, primary or secondary residence). | Income-based: full rebate for <80% AMI, 50% rebate for 80-150% AMI. Must achieve modeled energy savings. |
| Applies To | Homeowners | Homeowners, renters (with landlord approval) |
| Location | Nationwide | Nationwide |
| How to Claim | File IRS Form 5695 (Residential Clean Energy Credit, not Home Improvement Credit). | Applied at point of sale through participating 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 rebate for whole-home energy efficiency retrofits. $2,000-$4,000 for moderate income, $4,000-$8,000 for low income households achieving 35%+ energy savings.
Official source →