In August of 2022 the 30% tax credit for geothermal heat pump installations was extended through 2032 and can be retroactively applied to installations placed in service on January 1, 2022 or later. The credit is set to drop to 26% in 2033 and 22% in 2034 before expiring altogether.
Geothermal Heat Pump Eligible Property
- Home must be located in the United States
- The home does not have to be your main home
- Includes “Dwelling Unit” is defined as a house, apartment, condominium, mobile home, boat or similar property, and all structures or other property appurtenant to such dwelling unit.
- New Construction homes or renovation of a home is considered eligible when the taxpayers take residence in the home.
Placed In Service
- IRS defines “Placed in Service” when the property is ready and available for use.
Claiming the Tax Credit
- IRS Form 5695 is used to claim the Residential Energy Credit. Links have been provided to access the form and pertinent reference documents below:
State and Local Geothermal Incentives
South Carolina also offers a 25% of eligible Cost incentive. In any given tax year, a maximum of $3,500.00 or 50% of taxpayers tax liability for the taxable year, whichever is less. If the amount of the credit exceeds $3,500.00 for each facility the taxpayer may carry forward excess for up to 10 years. *
https://programs.dsireusa.org/system/program/sc/geothermal
For qualifying members, Lauren Electric is offering a $500.00 rebate for geothermal installations.