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Energy & Utilities

Residential Geothermal Heat Pump (30% + State Stacks)

30% §25D credit + state rebates on geothermal — heat/cool at 400–500% efficiency.

Overview

Geothermal heat pumps qualify for the 30% §25D residential clean energy credit (uncapped). Efficiency 400–500% (vs 100% gas / 250–300% air-source HP). CapEx $18K–$35K, credit takes $5–10K off. Stack with state credits (NY, MA, CT, MD all $2–5K) + utility rebates. Payback 8–14 years with heavy heating/cooling loads.

Best fit
Homeowners with high heating/cooling costsNew builds where geothermal loop is affordableOff-grid homesteaders
Estimated impact
50–70% cut in HVAC energy cost + federal + state credits

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