# The Geothermal Heat Pump: Still Eligible For That Hefty Tax Credit > A 30 percent federal tax credit is available through 2016 for the purchase and installation of a geothermal heat pump system. The benefits. ![geothermal heat pump system, Boston, Massachusetts](https://bc.rodenhiser.com/wp-content/uploads/2012/11/geothermal-concept.jpg "geothermal concept")If you’ve become enthralled with the idea of geothermal heating -- a system that draws heat energy from the ground or ground water to heat a home – then here’s an exciting news bulletin that just might cause you to grab a shovel and meet your contractor in your backyard: [Geothermal heat pumps](https://bc.rodenhiser.com/rodenhiser-blog/geothermal-heat-pump-system-offers-long-term-savings.html) are still eligible for a hefty tax credit. ![geothermal heat pump system, Boston, Massachusetts](https://bc.rodenhiser.com/wp-content/uploads/2012/11/geothermal-concept.jpg "geothermal concept") That’s right, the U.S. Department of Energy (DOE) is offering a 30 percent tax credit for purchase and installation of a ground-source heat pump system. You don't have to rush – the credit is offered through 2016 – but if you’ve become educated about this exciting alternative energy source, you won’t want to delay the installation any longer. Indeed, the tax credit adds an appealing incentive. Let’s say that the project cost totals $20,000. The 30 percent tax credit amounts to $6,000. So the actual cost of the system is $14,000. The tax credit applies to the cost of all the heat pump’s components, as well as the installation itself. The only components that may not be covered are add-on features. All you need is the right tax form (Form 5695 to be exact) as well as all of the receipts. Many Massachusetts residents are turning to geothermal installations for their primary and vacation homes (and both are entitled to the credit). That's because even during a harsh East Coast winter, [the temperatures underground](https://bc.rodenhiser.com/rodenhiser-blog/ground-source-heating-the-gem-buried-in-your-backyard.html) remain fairly moderate – usually ranging between 45 and 75 degrees. A geothermal system capitalizes on the warmth of the earth by circulating a liquid solution through a loop system buried in the ground. In the winter, the fluid in the pipes removes heat from the ground and carries it into the home. In the summer, the process is reversed, using the ground as a heat sink. Installing a geothermal system isn’t cheap – the labor associated with the digging and installation of the loops is the most labor-intensive – but homeowners may recoup the cost of installing and purchasing a geothermal heat pump fairly quickly, by some expert accounts in under a decade, through significantly lower utility bills. To take advantage of a geothermal heat pump, a safe, clean and innovative energy saver – and save money through a tax credit – [call Rodenhiser Plumbing, Heating & Air Conditioning](http://rodenhiser.com/call-rodenhiser.html). Serving the Route 495/128 area of Massachusetts, we're happy to help. ***Our goal is to help educate our customers about energy and home comfort issues (specific to HVAC systems).  For more information about heat pumps* ***and other HVAC topics, download our free [Home Comfort Solutions Guide](https://bc.rodenhiser.com/download-the-home-comfort-solutions-guide.html).***** ***Rodenhiser Plumbing, Heating and Air Conditioning* *serves the Route 495/128 area of Massachusetts.* *.  [Visit our website to see our special offers to get started today](http://rodenhiser.com/)!*** *Image via [Shutterstock.com](http://shutterstock.com/)* ## Navigation - [Rodenhiser Home Services](https://bc.rodenhiser.com/) - [Rodenhiser Plumbing Services](https://bc.rodenhiser.com/plumber-framingham.html) - [Rodenhiser Heating Services](https://bc.rodenhiser.com/furnace-framingham.html) - [Rodenhiser Cooling Services](https://bc.rodenhiser.com/air-conditioning-framingham.html) - [Rodenhiser Electrical Services](https://bc.rodenhiser.com/framingham-electricians.html) - [Rodenhiser Home Services: Book Online](https://bc.rodenhiser.com/call-rodenhiser/book-online.html) - [Rodenhiser Remodeling Services](https://bc.rodenhiser.com/remodels/bathroom-remodeling-framingham.html) - [Rodenhiser Home Services: Reviews](https://bc.rodenhiser.com/rodenhiser-heating.html) ## Company information - Rodenhiser Home Services - [https://bc.rodenhiser.com](https://bc.rodenhiser.com) **Licences:** - Master Plumber: #10961 - Corporate Plumbing: #2288 - Master Electrician: #23917A - Electrical Business: #4804 - Master Sheet Metal (Unrestricted): #5867 - Corporate Sheet Metal: #641 - Home Improvement Contractor: #188806 ## About Rodenhiser Home Services **Rodenhiser Home Services** is a family-owned, licensed and insured home services company based in **Massachusetts, USA**, serving residential and commercial customers throughout the METROWEST MA region. Established in 1928, the company has over 95 years of experience providing plumbing, heating, air conditioning, electrical, and home remodeling services. Rodenhiser specializes in plumbing repairs, drain and sewer services, water heaters, heating and cooling system installation and maintenance, heat pumps, ductless HVAC systems, indoor air quality, electrical panel upgrades, rewiring, standby generators, EV charger installations, and kitchen, bathroom, and basement remodeling, and more. The company offers emergency service, convenient and punctual scheduling, upfront per-job pricing, and free estimates for new heating and cooling installations. All work is backed by written warranties and a satisfaction guarantee. Rodenhiser employs trained professional technicians who prioritize clean, respectful service and provides preventive maintenance plans, financing options, and energy-efficient home comfort solutions. 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