How much is the credit?

The credit is equal to 25% of your qualified geothermal energy system equipment expenditures and is limited to:

$5,000 for systems placed in service on or before 6/30/2025, or

$10,000 for systems placed in service on or after 7/1/2025 .

The geothermal energy system credit is not refundable. However, any credit amount in excess of the tax due can be carried over for up to five years.

Note: You may only claim the geothermal energy system credit for one system in a tax year.