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Geothermal Tax Credits,
Rebates & Deductions

In addition to experiencing the cost saving efficiency of a ClimateMaster geothermal heating and cooling system, there are now immediate cost savings available to make your investment even more affordable. This page is a guide to help you find the local, state and federal tax credits, rebates and deductions.

We are not tax professionals, and this should not be interpreted as tax advice. Please consult your own accountant and/or lawyer for guidance on claiming any of the following incentives.

Dollars

Residential IRA Tax Incentives for Geothermal

Homeowners can now receive 30% on the installation of new geothermal systems with federal tax credits offered because of the Inflation Reduction Act legislation passed in August of 2022.
 

Residential tax incentives Brochure 
 

Claiming the Credit

IRS Form 5695 is used to claim the Residential Energy Credit

 

About Form 5695 
IRS Form 5695 
IRS Form 5695 Instructions 
ClimateMaster - Manufacturer’s Certification of Geothermal Heat Pump Compliance

 

Commercial IRA Tax Incentives for Geothermal

The Inflation Reduction Act (IRA), signed into law on August 16, 2022, substantially extends and enhances the federal income tax credits and incentives available for the installation of geothermal heat pump (GHP) systems in commercial buildings. The IRA includes the introduction of a new direct payment option for non-taxable entities.

For taxable businesses, there are also new carryback and transfer provisions along with a continuation of the accelerated depreciation benefits. Because the requirements for taking advantage of these incentives are very specific, we have designed a guide that provides a detailed evaluation of the new tax and depreciation incentives available for commercial GHP energy property under the IRA.
 

Commercial tax incentives Brochure 

DSIRE Website

There may be additional incentives for installing a ClimateMaster geothermal heating and cooling system. Visit the DSIRE Website to find out if there are state and local commercial and residential energy tax credits available in your area.

Click here for the Indiana section of the website

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