The information in this literature is for general information only. The information is not providing tax, accounting, legal or other professional advice. This material should not be used as a substitute for expert advice from a tax, accounting or legal professional.
The American Recovery and Reinvestment Act adopted in October 2008 allows for a 22% tax credit for costs associated with ENERGY STAR qualified geothermal heat pumps, as noted in section 25D of the Internal Revenue Code. The 22% credit applies to geothermal equipment placed in service during 2022.
Note: Equipment placed in service during 2008 was subject to a cap of $2,000. This cap was removed for geothermal heat pumps placed in service after December 31, 2008.