Tax Credits
& Rebates
30% till 2033
Homeowners are eligible for a 30% tax credit under the Inflation Reduction Act (IRA) Residential Energy Efficient Property Credit (Section 25D) for ENERGY STAR-rated GHPs that are in service by Jan. 1, 2033.
​
The tax credits expire at the end of 2034. The schedule for phasing out the tax credits means that the credit is:
-
30% when your GHP is placed in service after Dec. 31, 2021 and before Jan. 1, 2033.
-
26% when your GHP is placed in service after Dec. 31, 2032 and before Jan. 1, 2034.
-
22% when your GHP is placed in service after Dec. 31, 2033 and before Jan. 1, 2035.
Federal Tax Credit of 30%
25% up to $5,000
The credit is equal to 25% of your qualified geothermal energy system equipment expenditures and is limited to $5,000.
The geothermal energy system credit is not refundable. However, any credit amount in excess of the tax due can be carried over for up to five years.
New York State Tax Credit
on average $9,600 in savings
Customers save an average of $9,600 on a new geothermal system. Up to $2,000 per 10,000 Btuh of full load AHRI capacity.
NYSERDA Clean Heat Program
Sample Geothermal Install
Total installment cost - $60,920
Clean Heat Rebate - $16,160
Federal Tax Credit - $16,500*
NYS Residential Geothermal Heat Pump Tax Credit - $5,000*
​
Total Estimated Customer Cost - $23,260
Estimated Annual Energy Savings - $1,500**
​​
All figures are estimates, shown for sample purposes only. Cost varies with system size, design, location and insulation of your home. Rebate amounts subject to change.
​
​
*Federal tax credit of 30% of the total project cost, state tax credit of 25% or max of $5,000. Check with your tax advisor for any other potential tax incentives. More info available at Energy Star.
**Efficiency calculated by comparing heating performance of an ENERGY STAR-certified closed loop water-to-air geothermal heat pump to an ENERGY STAR-certified oil furnace.
​​