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.
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. The tax credit also applies to geothermal installations replacing an old geothermal system.
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.