Yes, Under the Bipartisan Budget Act of 2018, the renewable energy tax credits for geothermal heat pumps now feature a gradual step down in the credit value

How much:

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2021
  • 22% for systems placed in service after 12/31/2020 and before 01/01/2022

Timing:

Expires on December 31, 2021

Details:

Existing homes and new construction qualify.

Must meet the requirements of the ENERGY STAR program which are in effect at the time that the expenditure for such equipment is made.

  Water-to-Air   Water-to-Water      Direct Expansion
   Closed Loop:    Closed Loop: EER >= 16
       EER >= 17.1        EER >= 16.1 COP >= 3.6
       COP >= 3.6        COP >= 3.1  
   Open Loop:    Open Loop:  
       EER >= 21.1        EER >= 20.1  
       COP >= 4.1        COP >= 3.5

Find qualified models:

All ENERGY STAR  certified geothermal heat pumps are eligible for the tax credit:

How to apply:

File Tax Form 5695 with your tax return.