Geothermal heat pumps can be a great addition to your commercial building, but they can be expensive to install. Fortunately there are several geothermal tax credits and heat pump rebates available to commercial building owners. Browse the options below to find an incentive that suits you.
Canada
Federal Government
There are currently no commercial incentives offered by the Canadian Federal Government.
Provinces
Alberta Heat Pump Rebates
The Clean Energy Improvement Program (CEIP) which is considered a Property Assessed Clean Energy (PACE) style program is designed to help commercial building owners afford to upgrade their commercial space to be more efficient. The costs of the upgrades are recovered through the property taxes, which can be paid off at any time. This program is available for residential and commercial properties.
Learn more about the Clean Energy Improvement Program
United States
Federal Government
The federal government is offering building owners who place energy efficient commercial building property (EECBP) for new construction or energy efficient commercial building retrofit property (EEBRP) for existing buildings the ability to claim a tax deduction.
An increased deduction may be available for increased energy savings or meeting prevailing wage and apprenticeship requirements.
The deduction is allowed under Internal Revenue Code (IRC) Section 179D which was expanded under the Inflation Reduction Act of 2022.
State Geothermal Heat Pump Incentives
If you’re looking for commercial tax credits in your state, check the DSIRE database. This database contains all of the geothermal incentives on a state-by-state basis and is an excellent resource.
