Learn about Geothermal Tax Incentives

The US Federal Government has made available a geothermal tax incentives for homeowners who install a ground source heat pump (a Geothermal System.)  This tax credit is 30% of your total installation cost – which means that you will be able to offset existing income tax liabilities and reduce your final costs.

Chesapeake Geosystems’s attention to client service is another distinguishing factor of the firm, and is unparalleled in the industry. Every client gets an onsite team that is led by a superintendent. They are on-site from start to finish and can communicate with the client onsite about issues, solving them quickly.

Tax Credit Amounts:

  • From January 1, 2017-December 31, 2019 – 30%
  • From January 1, 2020-December 31, 2020 – 26%
  • From January 1, 2021-December 31, 2021 – 22%
  • There is no maximum credit. You get the true percentage based on the year you install the Geothermal HVAC system.
  • Systems must be placed in service on or before December 31, 2021.
  • The geothermal heat pump must meet federal Energy Star criteria. All geothermal systems that we install meet this criteria.
  • The tax credit can be taken on any home served by the geothermal system. It does not have to be the taxpayer’s main home.
  • It can be a vacation home or rental home.
  • Can be combined with energy efficiency upgrade tax credits
  • Can be carried forward if you don’t have enough tax liability to use the entire credit in one year

In addition, individual states have their own tax credits that you can use in conjunction with the Federal Tax Credit.  You can find out information about these credits by searching visiting the Database of State Incentives for Renewables & Efficiency (www.dsireusa.org) and clicking on your state on the map.  Alternately, you can call us at (800) 252-4007 and we’ll help you find information about incentives and credits in your city and state.

Chesapeake Geosystems is a geothermal installer that serves all of Maryland, including but not limited to Annapolis and Anne Arundel County, Baltimore City and County, Carroll County, Eastern Shore of Maryland, Frederick County, Howard County, Montgomery County, Northern Virginia, Prince George County, Southeast Pennsylvania, Southern Maryland, Western Maryland & Washington, D.C.

To learn more about Geothermal and geothermal contractors, visit our How Geothermal Works page that will explain how Geothermal works and will show you the benefits of geothermal energy and what it can do for your energy needs.

Additional Resources - Department of Energy