Big Changes Are Here: What Homeowners Need to Know About Geothermal Tax Incentives + Our Team Spotlight: Meet Chris

Geothermal systems have long been a gold standard for efficient, eco-friendly home heating and cooling.

And for years, homeowners could offset much of the upfront cost through generous federal tax incentives. However, Congress has recently made significant updates to that landscape.

Here’s what you need to know:

Recent Legislative Changes & the Fast-Closing Window

• The 30% Residential Clean Energy Tax Credit, which helped homeowners reduce the cost of installing geothermal heat pumps, is being phased out at the end of 2025.
• That means 2025 is likely the final year for homeowners to qualify for — and claim — this full incentive.
• The installation window is tight. Between planning, permitting, and construction, geothermal projects often take weeks or months to complete, and submitting for the credit requires that the equipment be placed in service by the December deadline.

What this means:
Time is of the essence. Anyone considering geothermal installation should move quickly to secure this valuable credit before it disappears.

Future Outlook: Could Geothermal Get Its Own Incentive?

While the current tax credit is phasing out, there’s growing momentum to continue supporting geothermal adoption—but in more focused, dedicated ways:

• Geothermal separated from wind and solar: Existing incentives often bundle clean technologies together. But many analysts and clean energy advocates argue that geothermal deserves its own incentive structure, given its unique installation needs, durability, and long-term energy savings.

• Rebounding with stronger support: Policymakers are starting to recognize geothermal’s unmatched efficiency and resiliency. Legislative proposals circulating in Congress suggest energy policy reforms that reinstate or redesign incentives specifically for geothermal heat pumps, adapting to their long lifespan and customer benefits.

If such reforms pass in the next few years, geothermal could return with even more targeted and favorable tax benefits—though no guarantees yet.

If you’re considering geothermal installation, act now—2025 is your likely last chance to benefit from a sizable federal tax credit. And while the future could bring new incentives tailored to geothermal alone, there’s no time to wait for legislation. The smartest move? Start planning today, install efficiently, and lock in the savings before the current credit expires.

Federal Commercial Geothermal Tax Credit Remains in Effect Through 2034

Businesses investing in geothermal heating and cooling systems can still take advantage of the federal Commercial Tax Credit, making this the perfect time to upgrade to an energy-efficient WaterFurnace system. This incentive helps offset installation costs, reduces long-term operating expenses, and supports sustainable energy goals. With the credit remaining in place, companies can lock in both immediate savings and decades of reliable, eco-friendly comfort.

Stay Informed with ECS Geothermal

At ECS Geothermal, we’re doing our best to stay ahead of the curve—closely following every change in legislation and adjusting our recommendations to help customers make the most of current and future opportunities.

If you have questions about how these changes affect your geothermal plans, or if you want to start the process before the installation window closes, contact ECS Geothermal today. Our team can walk you through the tax credit details, installation timelines, and financing options to ensure you’re positioned for maximum savings.

Meet Chris!

Chris is a longtime member of our sales team. With over 17 years of experience at ECS, Chris is a valued asset in load calculations, installation support and his overall knowledge in the value of geothermal. He enjoys connecting with customers and assisting to help them reach optimum comfort and efficiency. He takes pride in the long-term relationships he’s built, both with clients and with our builder partners. You can find Chris at every home show and assisting existing and future clients with Geothermal.

In his downtime, Chris enjoys spending quality time with his family. He is an active Grandpa to his three grandkids, Tripp, Eleanor, and Jack. Tripp has visited ECS Geothermal’s home show booth multiple times and loved it! Chris is a huge fan of the Denver Broncos, the Kansas City Royals, and his grandson’s T-ball team, of course. Chris and his German Shepherd “Reagan” are avid frisbee players, often playing multiple times a day.

Last, but not least.

Make sure you take advantage of our Helpful Operational Tips Page on our Website. By following these simple tips, you can be sure that you’ll not only save money on your energy bills but also contribute to a more environmentally friendly home.

Helpful Operation Tips – https://ecsgeothermal.com/helpful-operation-tips/