Rebates We Offer

Save On Your Next Home Project

E & J Geothermal, Inc.starstarstarstarstar4.8 / 5

244 Total Reviews /files//ej_geo-logo.png319-519-0261$400 East Main Street, SOLON IA

**UPDATE 08/18/2022**  As part of the Inflation Reduction Act of 2022 signed into law on August 16, 2022, residential energy efficiency tax credits have been extended through 2032.  This information applies to the existing tax credits for 2022.  Changes to residential energy efficiency tax credits under the Inflation Reduction Act will become effective starting in 2023. 

Tax credits for residential energy efficiency and those for builders of energy efficient homes were extended. Tax deductions for energy efficient commercial buildings allowed under Section 179D of the Internal Revenue Code were made permanent under the Consolidated Appropriations Act of 2021.

The tax credits for residential renewable energy products are now available through December 31, 2023. Renewable energy tax credits for fuel cells, small wind turbines, and geothermal heat pumps now feature a gradual step down in the credit value, the same as those for solar energy systems. As of 2021, biomass fuel stoves are included in tax credits for residential renewable energy products. 

*Disclaimer: The tax credit information contained within this website is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the Internal Revenue Service (IRS).

Stay comfortable all year long. E&J is ready to keep your heating and cooling systems working perfectly.

Enjoy the Benefits of Planned Maintenance

E&J Geothermal knows how much of an investment a new heating, air conditioning, air quality or geothermal system can be. That's why we want to help you protect your investment!

Service Agreements

GEOTHERMAL FEDERAL TAX CREDIT

Residential Clean Energy Credit (25D): Increases residential credit to 30% for GSHP for systems installed starting in 2022 (after December 31, 2021) and extends the credit through 2034 (26%/22% phase out in final two years); the credit is not refundable, but can carry forward to future tax years.

Commercial Tax Credit (48(a)): Increases commercial credit to 30% for GSHP and extends through 2034 (26/22% phase out in final two years); refundable only for state/local/tax-exempt organizations. The rate increases to 40% if projects use components and manufactured goods that meet domestic content requirements.  

GEOTHERMAL IOWA STATE TAX CREDIT

The credit will be available to consumers on a first-come, first-served basis with a cap on total funds available of $1million annually. There will be a wait list if the funds are depleted for the year. Applicants on a waitlist will be first in line for the next year. We expect more information from Revenue as questions come up.

As of today, taxpayers can apply for the credit for those taxpayers who have a geothermal heat pump installed on their residence on or after January 1, 2019. The deadline to submit an application is May 1 of the following year of installation. The Credit is equal to 20% of the federal residential energy efficient property tax credit allowed for geothermal heat pumps provided in section 25D(a)(5) of the Internal Revenue Code.

GEOTHERMAL FEDERAL TAX CREDITS

Energy Efficient Home Improvement Credit (25C): Restores/creates 30% residential tax credits through 2032 for:

  • Air source heat pumps and heat pump water heaters (capped at $2,000/yr per taxpayer).
  • MPUs or other electrical work (capped at $1,200/yr)
  • Home Energy Audits (capped at $150/yr)
  • Various other building envelope and electrification measures at different amounts ...
  • All measures added together have an additive cap of $1,200 if the project doesn’t include a heat pump or water heater.  
  • The additive cap is $2,000 if the project does include a heat pump or water heater. 
  • Note, biodiesel and gas water heaters and furnaces qualify for the same 30%/$2,000 credit as heat pumps and HPWHs. 

New Energy Efficient Home (45L): Increases the credit, through 2032, for developers upon sale of a house of $2,500 (EnergyStar single family home) or $5,000 (Zero-energy ready home), and extends credit through 2032.


Hope for HOMES: $4.3 billion. Provides funding for State energy offices for whole-home rebates for retrofits of up to $4,000/home for market rate customers, $8,000 for LMI homes (for energy savings >35%). Installation of a geo heat pump would meet the criteria for the maximum rebates. 

  • No income testing. 
  • Can be combined with ITC.
  • Rebate is based on either modeled or measured energy savings for the home overall
  • Not available for new construction, retrofit only.
  • Cannot receive a rebate through another federal program for the same measure (e.g. no double dipping w/ HEEHR).   

High Efficiency Electric Homes Rebates (HEEHR): $4.5 billion over 10 years. Provides fundings through State Energy Offices and Tribes for rebates for electric appliances. Rebates 50% or 100% of project cost, up to measure-specific caps $8,000 for gshp or ashp, $1,750 for a HPWH, and $4,000 for MPU + $2,500 for wiring. Total home cap of $14,000 cap. 

  • This program is income tested at 150% AMI. 
  • Can be combined with ITC
  • Available for new construction
  • 50% of costs up to rebate caps for households at 80%-150% AMI
  • 100% costs up to caps for households at greater than 80% AMI  
  • No double dipping with Hope for Homes or other federal rebates.

Utility Company Rebates*
* Residential only - Contact for information on Commercial Rebates

* All rebates are subject to change

Call for details on incentives today, whether E&J Geothermal has done work for you in the past or if you are thinking about having us install equipment - we are here to help.


  • Geothermal Closed Loop System: $400/ton
  • Ground Source Heat Pump Unit Replacement: $150/ton
  • Air Source Heat Pump: $200-300/ton + $250 Energy Star Bonus
  • Central Energy Star Air Conditioner: $100
  • Heat Recovery Ventilation (ERV): $250
  • Heat Pump Water Heater: $650
  • 50 Gallon High Efficiency Electric Water Heater: $75-150
  • BONUS New Construction or Switching from Gas/LP to first time electric: $100
  • New Geothermal System w/ Loops: Up to $1470
  • Air Source Heat Pump: Up to $800
  • Ductless Mini-Split System (Supplemental): $50
  • Ductless Mini-Split System (Whole House): $200
  • Central Air Conditioner: Up to $600
  • Electric Heat Pump Water Heater: Up to $350
  • Gas Furnace: Up to $180
  • Electric HVAC Tune-Up: $50/unit
    ***Beginning January 1, 2021 rebates on qualified electric equipment tune-ups may only be claimed once every three years. If you receive a rebate for a tune-up in 2021, you will not be eligible for another rebate until 2024.

  • Natural Gas Furnace: $175
  • Central Air Conditioner: $75-500
  • Air-Source Heat Pump: Up to $600
  • Geothermal Closed Loop System: $500/ton
  • Ground Source Heat Pump Unit Replacement: $200/ton
  • Air Source Heat Pump: $300/ton + $250 Energy Star Bonus
  • Central Air Conditioner: $100
  • Heat Pump Water Heater: $650
  • 50 Gallon High Efficiency Electric Water Heater: $100-200
  • BONUS New Construction or Switching from Gas/LP to first-time electric: $100
  • Heat Recovery Ventilation (ERV): $250

  • Geothermal Closed Loop System: $400/ton
  • Ground Source Heat Pump Unit Replacement: $150/ton
  • Air Source Heat Pump: $200-400/ton + $250 Energy Star Bonus
  • Central Air Conditioner: $100
  • Heat Pump Water Heater: $650
  • 50 Gallon High Efficiency Electric Water Heater: $75-150
  • BONUS New Construction or Switching from Gas/LP to first time electric: $100
  • Heat Recovery Ventilation (ERV): $250
  • Geothermal Closed Loop System: $400/ton
  • Ground Source Heat Pump Unit Replacement: $150/ton
  • Air Source Heat Pump: $200-300/ton + $250 Energy Star Bonus
  • Central Air Conditioner: $100
  • Heat Pump Water Heater: $650
  • 50 Gallon High Efficiency Electric Water Heater: $75-150
  • BONUS New Construction or Switching from Gas/LP to first time electric: $100
  • Heat Recovery Ventilation (ERV): $250

  • Geothermal Closed Loop System: $350/ton (NHC/LP
  • Conversion) OR $700/ton (Retro-fit)
  • Geothermal Ground Source Heat Pump Unit Replacement: $50/ton
  • Air Source Heat Pump: $400/unit (NHC/LP Conversion) OR $800/unit (Retro-fit)
  • Central Air Conditioner: $200
  • Heat Pump Water Heater: $400
  • Solar PV System: $0.125/kWhr feed-in rate
  • Geothermal Closed Loop System: $400/ton (Max. 20 tons)
  • Ground Source Heat Pump Unit Replacement: $250/unit
  • Central Air Conditioner: $100
  • Heat Pump Water Heater: $650
  • 40+ Gallon Resistance Storage Water Heater with Geothermal System: $150
  • BONUS New Construction or Switching from Gas/LP to first time electric: $100
  • Heat Recovery Ventilation (ERV): $250

  • Geothermal Closed Loop System: $300/ton (loops) + $300/ton (heat pump capacity)
  • Air Source Heat Pump: $600
  • Ductless Mini-Split: Up to $100/ton
  • Central Air Conditioner: Up to $300
  • Natural Gas Furnace: Up to $200
  • Natural Gas Boiler: Up to $400
  • WiFi / Programmable Thermostat: $50
  • Heat Pump Water Heater: $400
  • Ductwork Modification: Up to $1600
  • Geothermal Closed Loop System: Minimum $2,100
  • Ground Source Heat Pump Unit Replacement: 50% of Rebate calculated for new system
  • Air Source Heat Pump: Minimum $300-500
  • Ductless Mini Split: $350 Whole House / $50 Supplemental
  • Central Air Conditioner: Minimum $250
  • Electric High Efficiency Electric Water Heater: $150-200
  • Heat Pump Water Heater: $300
  • Wifi Thermostat: $25