Federal Tax Credit for Geothermal heat pumps placed in service after 12/31/2008 is 30% of total install cost. Geothermal heat pumps must meet federal Energy Star criteria. Iowa’s Geothermal Heat Pump tax credit is 20% of the Federal Tax Credit. That is equivalent to 6% of the system cost. When combining the federal and state tax credits, you would receive a 36% credit on total installation cost.
Depending on where you live, you may qualify for energy rebates through your utility company when you purchase a high-efficiency home comfort system. So, on top of the money you save in the form of federal tax credits, you can potentially pocket a return from your local electric utility provider.