Geothermal Tax Credits

To help you pay for your geothermal energy system, there are a variety of Maryland tax credits available in Harford County, Howard County, and Montgomery County, as well as a 30% tax credit from the U.S. Department of Energy.

30% Federal Tax Credit

According to the U.S. Department of Energy, consumers who install geothermal heat pumps can receive a 30% tax credit for systems placed in service before December 31, 2016.

Learn more about the U.S. geothermal tax credit.

Maryland Geothermal Tax Credits

  • Harford County Geothermal Tax Credit
    Harford County offers a tax credit for real property taxes imposed on residential or nonresidential buildings or other structures that use geothermal devices for heating, cooling, or generating electricity for on-site consumption. The credit amount is equal to one year of total real property taxes or $2,500, whichever is less.

    Learn more about the Harford County geothermal tax credit.

  • Howard County Geothermal Tax Credit
    A property tax credit is also available in Howard County for geothermal energy devices used in residential structures. This credit is the lesser of 50% of the eligible cost, or $5,000 for a heating system or $1,500 for a hot water supply system.

    Learn more about the Howard County geothermal tax credit.

  • Montgomery County Geothermal Tax Credit
    Montgomery County offers property tax credits on residential, owner-occupied structures equipped with geothermal energy systems. The tax credit is equal to 50% of the cost of the system, up to $5,000 for heating, cooling, and electricity generating systems and $1,500 for water heating systems.

    Learn more about the Montgomery County geothermal tax credit.


Watervale Heating & Air Conditioning installs geothermal energy systems in:

  • Harford County
  • Cecil County
  • Baltimore County
  • Howard County
  • Montgomery County
  • Carrol County
  • Anne Arundel County