Those who install a geothermal heat pump can qualify for a significant rebate from the Internal Revenue Service (IRS) through their tax return. This funding does not provide for the entire cost of the geothermal system, though. Taxpayers may only claim up to 30 percent of the value of a geothermal heat pump–including installation costs. The tax credit is only available for geothermal heat pumps, and can only be applied to systems that are Energy Star certified. Geothermal heat pumps funded under this credit can serve both heating and cooling purposes: geothermal systems use the earth’s ability to absorb and retain heat to help stabilize room temperatures. Additionally, this tax credit can be applied to geothermal heat pumps at a residence other than your main home.
Internal Revenue Service
500 N. Capitol St. NW
Washington, DC 20221
Maryland Energy Administration Grants
In the state of Maryland, grants are available to pay for heating and cooling systems using geothermal energy. Unlike the federal tax rebate, this grant can fund programs up to the full value of their costs. However, this grant is limited to a maximum award of $3,000 for residential systems, and to $500 for each ton of cooling capacity. The first limit is fairly straightforward. The second limit is a little more complicated. It’s intended to ensure grant awards go to technologies that are energy and cost efficient. Homeowners can apply for this grant through the Maryland Energy Administration. This grant award can be used alongside the federal tax credit, but it’s important to remember that taxpayers can only claim the federal credit on their personal costs of a residential geothermal heat pump–the cost they paid after grant awards.
Maryland Energy Administration
60 West St
Annapolis, MD 21401
Read more: Information courtesy of EHow (http://www.ehow.com/list_6741687_grants-residential-geothermal-systems.html)