Federal geothermal tax credits for alternative energy equipment terminates for property placed in service after December 31, 2021. The applicable percentages are: In the case of property placed in service after December 31, 2016, and before January 1, 2020, 30 percent. In the case of property placed in service after December 31, 2019, and before January 1, 2021, 26 percent. In the case of property placed in service after December 31, 2020, and before January 1, 2022, 22 percent.
2020 IRS Updates: Geothermal Tax Credits

[Image: Earth River Geothermal - Geothermal Heating and Cooling - Annapolis, Maryland]

26% Federal Geothermal Tax Credit, Rebates & Grants

Geothermal heat pumps are similar to ordinary heat pumps; however, geothermal HVAC systems use the ground, instead of the outside air, to provide heating, air conditioning, and, in most cases, hot water. Due to the fact that geothermal systems are the most efficient heating and cooling systems available, the United States federal government has enacted a 26% federal geothermal tax credit with no upper limit.

Residential Energy Credits 2019 IRS Form 56952018 Federal Geothermal Tax Credit -, IRS Form 5695

26 % Federal Geothermal Tax Credit Requirements*

# Closed Loop Open Loop Direct Expansion: Maryland Geothermal Grants:
1 EER ≥ 14.1 EER ≥ 16.2 EER ≥ 15.0 EER ≥ 15.5
2 COP ≥ 3.3 COP ≥ 3.6 COP ≥ 3.5 COP ≥ 3.5