Financial Incentives
Geothermal Tax Credits & Rebates
Federal, state, and utility incentives can significantly reduce your geothermal investment. Here's a comprehensive guide to available programs for 2026.
⚠️ Important 2026 Federal Tax Credit Update
The federal Residential Clean Energy Credit (Section 25D) — which provided a 30% uncapped tax credit for residential geothermal installations — expired December 31, 2025. If you installed a system before that date, you may still claim the credit on your 2025 tax filing.
Commercial projects continue to qualify for the federal Investment Tax Credit (ITC) under the Inflation Reduction Act. State and utility incentive programs also remain active across New England. Contact GDNE for a current incentive analysis specific to your project.
Federal Tax Credits
Residential Clean Energy Credit (§25D)
Expired December 31, 2025. This credit provided a 30% uncapped tax credit for residential geothermal heat pump installations. Systems installed before the expiration may still claim the credit.
State and utility incentives listed below remain active for residential projects.
Energy Investment Tax Credit (ITC)
Commercial and institutional geothermal projects qualify for a 6% base ITC, increasing to 30% for projects under 1 MW or meeting prevailing wage and apprenticeship requirements.
- ✓ Domestic Content Bonus: +10% (50% bonus starting 2026)
- ✓ Energy Community Bonus: +10%
- ✓ MACRS Depreciation: Accelerated 5-year schedule
- ✓ Section 179D: Up to $5/sq ft deduction
State-by-State Incentive Guide
Select your state to see available residential and commercial geothermal incentives.
- $ Mass Save Rebate: Up to $13,500 for whole-home ground-source system ($25,000 income-qualified)
- $ 0% Financing: Mass Save HEAT Loan up to $25,000 for energy efficiency upgrades
- $ Alternative Energy Credits (AECs): One-time cash payment worth several thousand dollars
- $ Sales Tax Exemption: Geothermal equipment exempt from 6.25% state sales tax
- $ New England Heat Pump Accelerator: Additional midstream incentives launching 2026
- $ Mass Save Custom Rebates for commercial ground-source projects (can exceed $15,000)
- $ Municipal Light Plant (MLP) Rebates: Up to $4,500 per ton (e.g., Concord)
- $ Federal ITC: 6–30% + bonus adders for domestic content and energy communities
Calculate Your Savings
Get a Personalized Incentive Analysis
Every project is different. Contact us for a detailed, personalized analysis of all federal, state, and utility incentives available for your specific situation.