Federal Tax Credit for Geothermal
The U.S. Government was offering a 26% federal tax credit (no cap) for the purchase and installation of residential geothermal heat pump systems. The 26% tax credit is valid through December 31, 2022. On January 1, 2023, the tax credit reduces to 22%.
Provide receipts to your tax preparer and have them complete IRS Form 5695 at tax time to receive your 26% tax credit for 2020 and 2021.
Mass Save 0% Heat Loan
The Mass Save Heat Loan Program provides customers the opportunity to apply for a 0% loan from participating lenders to assist with the installation of qualified energy efficient improvements in their homes. The Mass Save Heat Loans are available for up to $25,000 (depending on utility) with terms up to 7 years. To apply for the Mass Save Heat Loan, the customer must own a one-to-four-family residence and obtain a Mass Save Home Energy Assessment. Not all municipal power providers participate in the program. Please visit the Mass Save website to see if you are eligible.
Through its Electric Heating and Cooling program, Mass Save is offering a rebate of up to $15,000 based on system size, to eligible homeowners who install qualifying ground-source heat pumps, to replace oil or propane heating systems. The rebate is valid for systems installed between January 1, 2021 to December 31, 2021.
Massachusetts Department of Energy Resources Alternative Energy Credits Program
All geothermal systems installed in Massachusetts are eligible to earn Alternative Energy Credits (AECs) through the Massachusetts Department of Energy Resources (MA DOER). If the heating capacity of the geothermal system is less than 132,000 Btuh, then the number of AECs earned is simply calculated based on the size of the home. The minimum number of AECs that can be earned is 230. For every square foot over 1,500 and additional 0.158 AECs per square foot is earned. Additional information about the State regulations pertaining to this program, please visit this link.
Please visit our blog post for additional information about how to earn Alternative Energy Credits.