Federal Tax Credit - Geothermal
A 30% federal tax credit for residential ground source heat pump installations has been extended through December 31, 2032. The incentive will be lowered to 26% for systems that are installed in 2033 and 22% in 2034
What’s Eligible
Geothermal equipment that uses the stored solar energy from the ground for heating and cooling and that meets ENERGY STAR requirements at the time of installation is eligible for the tax credit. Covered expenditures include labor for onsite preparation, assembly, or original system installation and for piping or wiring to connect a system to the home. The structure must be located in the United States and used as a residence by the taxpayer, although primary residency isn’t required. In fact, if geothermal is installed in more than one home, there’s no limitation on the number of times the credit can be claimed.
How to Claim the Credit
Use IRS Form 5695 to claim the Residential Energy Efficient Property Credit, Please consult with your Tax Advisor for additional information.
Empower Maryland Energy Saving Programs
Passed in 2008 by the Maryland General Assembly, EmPOWER Maryland Energy Efficiency Act, established a goal to reduce per capita electricity usage and peak demand 15% by 2015. Energy efficiency is one of the least expensive ways to meet the growing electricity demands of the state, EmPOWER helps to promote energy efficiency saving Marylanders money.
Geothermal Renewable Energy Credits (GRECs)
Your geothermal heating and cooling system generates GRECs based on key factors of your home, like square footage, insulation quality, and type of heating system replaced.