In February 2018, the tax credit was reinstated through 2019 and can be retroactively applied to installations placed in service on January 1, 2017 or later. Geothermal equipment that uses the stored solar energy from the ground for heating and cooling and that meets ENERGY STAR requirements at the time of installation is eligible for the tax credit. The credit has no limit and there's no limitation on the number of times the credit can be claimed.
The energy tax credit can be combined with solar and wind credits as well as energy efficiency upgrade credits. The energy tax credit can be combined with solar and wind credits as well as energy efficiency upgrade credits. While the 30% credit expired at the end of 2019, a 26% credit is still available through 2020. The incentive is set to decrease once again down to 22% in 2021, though, so act quickly to save the most on your installation.
In addition to the federal tax credit, some state, local, and utility incentives may be available in your area for even more savings on installing a geothermal heat pump. Check out the Database of State Incentives for Renewables & Efficiency (DSIRE) website to find policies and incentives in your area.