Geothermal Heat Pump Credit
30% credit for installing qualifying geothermal heat pump systems in residential properties.
Estimate Your Savings
This is a simplified estimate. Actual savings depend on your complete tax situation.
Eligibility
Homeowners installing geothermal heat pumps
Requirements
- 1Qualifying geothermal heat pump system
- 230% of cost through 2032
- 3Must meet Energy Star requirements
Required Tax Forms
Understanding the Geothermal Heat Pump Credit
30% credit for installing qualifying geothermal heat pump systems in residential properties.
Tax credits directly reduce the amount of tax you owe, making them more valuable than deductions which only reduce taxable income. On average, taxpayers save approximately $4,000 with this credit.
To claim this credit, you will need to file Form 5695 with your annual tax return. Make sure you meet all eligibility requirements and keep documentation of qualifying expenses or activities.
Calculate Your Full Tax Picture
Use our free tax calculators to estimate your total tax liability and savings.
Browse Credits by Category
Frequently Asked Questions
What is the Geothermal Heat Pump Credit?
30% credit for installing qualifying geothermal heat pump systems in residential properties.
How much is the Geothermal Heat Pump Credit worth?
The average savings from the Geothermal Heat Pump Credit is approximately $4,000 per year, depending on your specific situation.
Who is eligible for the Geothermal Heat Pump Credit?
Homeowners installing geothermal heat pumps. Key requirements include: Qualifying geothermal heat pump system; 30% of cost through 2032; Must meet Energy Star requirements.
What forms do I need to claim the Geothermal Heat Pump Credit?
You will need to file Form 5695 with your tax return to claim this credit.
Is the Geothermal Heat Pump Credit refundable?
Most business and energy tax credits are nonrefundable but can be carried forward to future tax years.
Can I claim the Geothermal Heat Pump Credit with other tax credits?
Yes, in most cases you can claim the Geothermal Heat Pump Credit along with other eligible tax credits. However, some credits have interactions that may reduce the benefit. Consult a tax professional for your specific situation.