Geothermal Heat Pumps Tax Credits

Bosch Geothermal Heat Pumps Tax Credit Info



As part of the American Recovery and Reinvestment Act of 2009 (ARRA), the United States Tax Code was revised to expand the existing tax credit available to consumers related to the installation of geothermal heat pumps. As a result, consumers purchasing qualified systems now can take a one-time tax credit equal to 30% of the investment in the geothermal system, including installation costs, without a cap.


Qualified system must meet the following requirements:



Installed after January 1, 2009 and before December 31, 2016.

According to the Internal Revenue Service (IRS) guidance, the Federal tax credit is tied to the Energy Star specification that is in effect at the date of installation.

Installed in residence (not limited to primary residence).

For purposes of Energy Star qualification, geothermal heat pumps include the following: open loop, closed loop, and DGX and are powered by a single phase current.

2012 Federal Tax Credits: What You Need to know



Qualifying Products:

Geothermal Heat Pumps

Solar Energy Systems


Tax Credit:

30% of cost with no upper limit



December 31, 2016



Existing homes & new construction qualify. Both principal residences and second homes qualify.

(Rentals do not qualify.)