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Rebates, Tax Credits & Finance

Federal Opportunities for Geothermal Projects as of February 17th, 2009

The 30% tax credit for residential geothermal heat pump (GHP) systems is good until December 31, 2016.

No cap on 30% tax credit for residential projects! 10% federal tax credit and 5 year accelerated depreciation for commercial projects.


More About the Stimulus Package

  • The 30% residential tax credit has the effect of making geothermal systems cash flow positive at today’s energy prices in virtually every market.
  • The federal, state, military and school initiatives will create hundreds of large installations calling for hundreds of geothermal heat pump units each, as well as geothermal loop field work.
  • 10% tax credit and accelerated depreciation opportunities also make commercial geothermal projects very attractive.

What You Can Do

The huge stimulus going to all 50 states will now require renewed effort on the part of our industry to tell the geothermal heat pump story in each of the 50 states to assure the most effective use of the federal energy efficiency funds they will be receiving. Here is what you can do to help:

  • Forward the information below to your local and state media contacts (newspapers, TV stations, radio stations, etc.).
  • Post this information on your website.
  • Talk to your school boards and administrators about the hundreds of schools already enjoying the benefits of geothermal heat pump systems.
  • Contact your state and local government agencies responsible for energy and environmental programs and educate them on how geothermal heat pumps can help them meet their objectives with the stimulus funds.

General Information

Learn more about the stimulus bill, and what it means for your geothermal project.

Residential Projects

No cap on 30% tax credit for residential projects!

Geothermal heat pump systems for residential applications (new, retrofit, primary and non-primary residences) receive a 30% tax credit starting January 1, 2009 through December 31, 2016. (The $2,000 limit for the 2008 tax credit has been removed for 2009 and later years.)

Commercial Projects

10% federal tax credit and 5 year accelerated depreciation for commercial projects.

Created by the Energy Policy Act of 2005 (EPAct), Section 179D of the Internal Revenue Code allows for generous tax savings for lead designers of municipal buildings with energy efficient, green design.

State Specific Resources

Visit our state-by-state reference for more detailed information about opportunities in your area.

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