U.S. House & Senate Pass Legislation Expanding Tax Credits for Geothermal Heat Pump Installations

As part of the Emergency Economic Stabilization Act of 2008, HVACR tax incentives for homeowners and businesses were extended. With the new American Recovery and Reinvestment Act of 2009, the $2000 tax credit limit has been removed. Key information is as follows:

The new legislation covers installations from January 1, 2009 through December 31, 2016.
Homeowners who install geothermal systems may be able to claim up to 30% of the installed cost in tax credits in the year the system is placed into service. (Capped at $2000 for system installed in 2008 – No cap for 2009 and beyond).
An extension of the Commercial Building Tax Deduction until 2013 that allows building owners to deduct up to $1.80 per square foot for improvements in overall performance.


To investigate your state incentives visit the Database of State Incentives Renewables