As of September 2020, there are two government incentives available to reduce the net cost of installing a geothermal (ground source heat pump) heating & cooling system:
If you pay a monthly “system benefit charge” or SBC to your electric utility, they offer a rebate for a qualified installation of a ground source (aka geothermal) heat pump system. (RG&E, NYSEG, and National Grid electricity customers pay the SBC; municipal electric, e.g. Spencerport Municipal Electric and Fairport Electric, customers do not and, therefore, are not eligible for this incentive.) The system must be designed and installed by NYSERDA-qualified contractors, such as Lake Country Geothermal. The rebate is paid directly to the contractor, who applies all but up to $500 of it as a credit toward the installation price invoiced to the client. The rebate is worth $1500 per 10,000 Btu/hr of heat pump heating capacity less up to $500 at the contractor’s discretion. A typical home requires 30,000 to 60,000 Btu/hr of heat capacity, so most rebates are worth between $4500 and $9000. Application is made by the contractor on behalf of the client and is typically applied for and approved before the project begins. The project must be completed and start-up performance data submitted within 12 months of approval for existing buildings and within 24 months for new construction. This program is expected to continue through 2024.
The Federal government also offers a tax credit for qualified geothermal system installations. For residential installations completed by December 31, 2020, the credit is 26% of qualified costs; for residential installations completed after that and by December 31, 2021, the credit is 22%. Commercial installations commenced by December 31, 2021 are eligible for a 10% tax credit and MACRS 5-year accelerated depreciation. The client is responsible for applying for this incentive at the time (s)he submits tax returns. See IRS Form 5695 https://www.irs.gov/pub/irs-pdf/f5695.pdf for more information.
We suggest that you contact your electric utility, as they may also offer an incentive. National Grid, for example, has for over a year.