U.S. Federal Tax Credit
There is a 30% federal tax credit for residential geothermal heat pumps, and a 30% federal tax credit for commercial geothermal heat pump installations. There is an additional 10% tax credit available for commercial installations that use domestic products, such as those made in our Mitchell, South Dakota factory.
The Inflation Reduction Act, adopted in August 2022, allows for a 30% tax credit for costs associated with ENERGY STAR-qualified residential geothermal heat pumps, as noted in section 25D of the Internal Revenue Code. The 30% credit applies to geothermal equipment installed during 2022-2032.
Additional US Incentives
While the 30% tax credit is the most popular incentive available in the US, there are state and local incentives available in many areas, as well.
DSIRE USA is a database of available state and local incentives.
Canadian Incentives
There are numerous provincial and local incentives for energy efficient products is available in Canada. A list of incentives from provincial/territorial governments, major Canadian municipalities, and major electric and gas utilities is available at the Natural Resources Canada website.
