Tax Credit & Incentive Finder

Not for new residential installations. The federal §25D residential clean energy credit was terminated by the One Big Beautiful Bill Act (P.L. 119-21) for expenditures made after December 31, 2025. Per IRS guidance, "expenditure made" means installation completed. Commercial-use installations may still qualify under §48 (Investment Tax Credit), which is a separate program. State and utility incentives remain available in many regions and have grown stronger in some markets.

The One Big Beautiful Bill Act, signed July 4, 2025, terminated §25D for residential geothermal heat pumps placed in service after December 31, 2025. Before OBBBA, the credit covered 30% of qualifying installation costs with no cap. The termination applies to the date the system is placed in service (installation completed), not the date a contract is signed or a deposit paid. Carry-forward rules for unused 2025 credits still apply.

Yes. If your 2025 §25D credit exceeds your federal tax liability for that year, the unused portion can be carried forward to future tax years using IRS Form 5695. The credit itself is non-refundable, meaning it can reduce your tax owed to zero but won't generate a refund beyond that. Carry-forward applies only to credits earned for systems placed in service on or before December 31, 2025. Consult a tax professional for your specific situation.

Many states maintain active programs, including direct tax credits, rebates, sales-tax exemptions, property-tax exemptions, and low-interest loans. New York, Massachusetts, Connecticut, Maryland, Virginia, Minnesota, New Jersey, Oregon, Washington, and Colorado all currently offer one or more incentives. The most comprehensive national database is the Database of State Incentives for Renewables and Efficiency at DSIREusa.org, which tracks programs across all 50 states and updates continuously. Verify any program with its administrator before relying on it.

Yes. The Mass Save Geothermal Heat Pump rebate provides up to $13,500 for standard residential installations and up to $25,000 for income-qualified households at or below 60% of State Median Income. Eligibility requires working with a participating contractor, meeting equipment specifications, and applying through Mass Save's process — typically before installation begins. Program rules and rebate amounts can change; confirm current terms directly with Mass Save before scheduling work.

New York's geothermal state tax credit was raised from $5,000 to $10,000 effective July 1, 2025. It applies to qualifying residential ground-source heat pump installations and is claimed on your New York State income tax return. NYSERDA's Clean Heat program separately offers approximately $3,000 per ton of installed capacity through participating contractors, applied as an upfront installation discount. Together, these can substantially offset installation costs for New York homeowners.

Smart-E is a low-interest loan program, not a rebate. Through participating Connecticut credit unions and lenders, qualifying geothermal installations can finance at 0.99% APR through June 30, 2026, for terms up to 12 years. You repay the principal — there is no grant component — but the subsidized rate significantly reduces total financing cost compared to standard home-improvement loans. Loan amounts, terms, and eligibility vary by lender; check the Connecticut Green Bank's current participating-lender list.

§48, the Investment Tax Credit for commercial energy property, is separate from §25D and was not terminated by OBBBA on the same schedule. Commercial-use geothermal installations — including some mixed-use and rental properties — may still qualify, with potential bonus credits for domestic content and energy-community siting. The rules are technical, and qualification depends on the property's use and ownership structure. Commercial owners should engage a tax professional experienced with §48 before assuming eligibility.

Yes, generally. Utility rebates are funded and administered by your electric or gas utility — examples include Xcel Energy's geothermal rebate (roughly $50–$100 per ton in Minnesota, $200–$800 in Colorado) and Energy Trust of Oregon's program (up to $2,000). These typically stack with state-level credits or rebates, but program rules vary. Always check whether incentives can be combined and whether one program reduces the eligible basis for another before assuming totals.

Most state programs require you to apply before installation begins, retain itemized contractor receipts and equipment specification sheets, and file with your state income tax return or rebate-program forms. Tax credits typically file with your state return; direct rebates require submitting an application packet through the program administrator (utility or state agency). Programs change frequently — verify current eligibility, application windows, and required documentation directly with each program before signing a contract or scheduling work.