The Obama Administration’s Economic Stimulus Package Involves strong tax incentives for residential home owners who install geothermal heat pumps.

Geothermal energy is very efficient, clean and low-cost after initial installation.

The tax incentive provides for a 30% tax credit for Energy Star- qualified systems installed in 2009 or later. For systems installed in 2008 there is a $2000 limit on this tax incentive payment.

In the latter case US citizens should use IRS 2008 Form 5695 for the Residential Energy Efficient Property Credit to claim their $2,000. You can You can download that form here

Geothermal heat pumps also attract government renewable energy incentives in Australia, Canada and the UK.