Green Rewards from Uncle Sam

Quick Reference:

Tax Incentives for Geothermal Heat Pumps

Item	Tax Credit	Tax Credit Requirements
Geothermal Heat Pumps	30% of cost, no maximium	All Energy Star geothermal heat pumps qualify for the tax credit. Use IRS Form 5695. Must be placed in service before December 31, 2016.

 

Notes

Though geothermal heat pumps can be more expensive than traditional heat pumps, the cost difference is typically made up over time through lower energy bills.

Efficiency of Geothermal Units:

Closed Loop Systems:
Energy-Efficiency Ratio (EER) ≥ 14.1
Coefficient of Performance (COP) ≥ 3.3

Open Loop Systems:
EER ≥ 16.2
COP ≥ 3.6

Direct Expansion Systems:
EER ≥ 15
COP ≥ 3.5