Federal Energy Tax Credits and Rebates

Federal Energy Tax Credits for Residential Owners Geothermal heat pumps are eligible for 30% of the installed cost without a cap, as provided under the American Recovery and Reinvestment Tax Act of 2009 (ARRA). The incentive is available for taxpayers installing qualifying equipment at their primary residence or second home, but not for a rental property.
Federal Energy Tax Credits for Commercial Owners Two options exist for the commercial incentive. An investment energy tax credit of 10% of the installed cost is available through 2016. The ARRA legislation also provides the option of taking a grant in lieu of the energy tax credit, worth 10% of the installed costs for equipment placed in service during 2009 and 2010.