FederalTax CreditHVAC / Heat Pumps

Geothermal Heat Pump Tax Credit

Amount

30%

Maximum

No cap

Expiration

30% through 2032, 26% in 2033, 22% in 2034

Overview

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.

Eligibility

Homeowners (new or existing homes, primary or secondary residence).

How to Claim

File IRS Form 5695 (Residential Clean Energy Credit, not Home Improvement Credit).

What It Covers

Geothermal heat pumps, installation

Income Limits

None

IRS Form

File Form 5695 with your federal tax return to claim this credit.

Official Source

https://www.irs.gov/credits-deductions/residential-clean-energy-credit

Frequently Asked Questions

How much is the Geothermal Heat Pump Tax Credit worth?

The Geothermal Heat Pump Tax Credit provides 30% (up to No cap) as a tax credit. This is a federal-level program in the HVAC / Heat Pumps category. It applies nationwide to qualifying households.

Who is eligible for the Geothermal Heat Pump Tax Credit?

Eligibility: Homeowners (new or existing homes, primary or secondary residence).. This program applies to: Homeowners.

Is the Geothermal Heat Pump Tax Credit a tax credit or a rebate?

The Geothermal Heat Pump Tax Credit is classified as a Tax Credit. Tax credits reduce your tax liability dollar-for-dollar when you file your return.

How do I claim the Geothermal Heat Pump Tax Credit?

File IRS Form 5695 (Residential Clean Energy Credit, not Home Improvement Credit).

When does the Geothermal Heat Pump Tax Credit expire?

This program is currently set to expire: 30% through 2032, 26% in 2033, 22% in 2034.

Who is eligible for the Geothermal Heat Pump Tax Credit?

Homeowners (new or existing homes, primary or secondary residence).

How much is the Geothermal Heat Pump Tax Credit worth?

The Geothermal Heat Pump Tax Credit provides 30% as a tax credit on your federal return. This can be combined with state and utility incentives for additional savings.

State HVAC / Heat Pumps Programs That Stack

These state programs can be combined with the Geothermal Heat Pump Tax Credit:

Alaska Heat Pump RebateAlaska - $1,631 Chugach Electric Heat Pump RebateAlaska - $500-$3,000 Chugach Electric Smart Thermostat RebateAlaska - $50-$100 Matanuska Electric Heat Pump RebateAlaska - $500-$3,000 Alabama Heat Pump RebateAlabama - $2,126 Alabama Power Smart Thermostat RebateAlabama - $50-$100 TVA Heat Pump RebateAlabama - $500-$3,000 Arkansas Electric Cooperative Smart Thermostat RebateArkansas - $50-$100 Arkansas Heat Pump RebateArkansas - $822 Entergy Arkansas Heat Pump RebateArkansas - $500-$3,000

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RebatePeek Editorial TeamData Specialists

The RebatePeek editorial team aggregates and verifies programs data from DSIRE, IRS, DOE, EIA & State Energy Offices. Every statistic on this site is cross-referenced against the official source before publication, with quarterly re-verification cycles.

✓ Sourced from DSIRE, IRS, DOE, EIA & State Energy Offices✓ Quarterly review✓ No paid placements

Read our full methodology or contact us with corrections.

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Frequently Asked Questions

How much is the Geothermal Heat Pump Tax Credit worth?

The Geothermal Heat Pump Tax Credit provides 30% (up to No cap) as a tax credit. This is a federal-level program in the HVAC / Heat Pumps category. It applies nationwide to qualifying households.

Who is eligible for the Geothermal Heat Pump Tax Credit?

Eligibility: Homeowners (new or existing homes, primary or secondary residence).. This program applies to: Homeowners.

Is the Geothermal Heat Pump Tax Credit a tax credit or a rebate?

The Geothermal Heat Pump Tax Credit is classified as a Tax Credit. Tax credits reduce your tax liability dollar-for-dollar when you file your return.

How do I claim the Geothermal Heat Pump Tax Credit?

File IRS Form 5695 (Residential Clean Energy Credit, not Home Improvement Credit).

When does the Geothermal Heat Pump Tax Credit expire?

This program is currently set to expire: 30% through 2032, 26% in 2033, 22% in 2034.

Who is eligible for the Geothermal Heat Pump Tax Credit?

Homeowners (new or existing homes, primary or secondary residence).

How much is the Geothermal Heat Pump Tax Credit worth?

The Geothermal Heat Pump Tax Credit provides 30% as a tax credit on your federal return. This can be combined with state and utility incentives for additional savings.