Tax Credits & Incentives in Canada

Canada offers various incentives at the federal, provincial, and municipal levels to encourage the adoption of geothermal heat pumps. Coming in the form of grants, rebates, and tax credits, these incentives can significantly reduce the upfront costs of installing a geothermal system. The Canada Greener Homes Grant alone offers up to $5,000 for new installations that qualify.

On this page you will find a map with information organized by region to help you find the geothermal installation incentives that are available to you.

Select your province to view the available residential tax credits and incentives.

CA residential incentives

Residential Federal Incentives

The Canada Greener Homes Initiative is a federal program available to homeowners in Canada. It offers a grant of up to $5,000 for new installations that qualify. Other incentives are also available.

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CA commercial incentives

Commercial Federal Incentives

The Government of Canada makes clean energy projects for commercial use more financially attractive by providing business income tax incentives.

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Province and Incentives Resources

British Columbia

Federal: Up to $5,000 for Residential installations and an Accelerated Capital Cost Allowance for Commercial

Alberta

Federal: Up to $5,000 for Residential installations and an Accelerated Capital Cost Allowance for Commercial

Saskatchewan

Federal: Up to $5,000 for Residential installations and an Accelerated Capital Cost Allowance for Commercial

Manitoba

Federal: Up to $5,000 for Residential installations and an Accelerated Capital Cost Allowance for Commercial

Local: Heat pump upgrade program available

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Quebec

Federal: Up to $5,000 for Residential installations and an Accelerated Capital Cost Allowance for Commercial

Local: Up to $2,800 in heat pump financial assistance

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Local: Up to $5,365 in heat pump financial assistance

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Deduct $750 per 1,000 BTU/h on a geothermal install. An average home is typically 3-5 tons. For example:

  • 3 Tons = 36,000 BTU/h @ $750/1K = $27,000 in financial assistance.
  • 4 Tons = 48,000 BTU/h @ $750/1K = $36,000 in financial assistance.
  • 5 Tons = 60,000 BTU/h @ $750/1K = $45,000 in financial assistance.
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Ontario

Federal: Up to $5,000 for Residential installations and an Accelerated Capital Cost Allowance for Commercial

New Brunswick

Federal: Up to $5,000 for Residential installations and an Accelerated Capital Cost Allowance for Commercial

Prince Edward Island

Federal: Up to $5,000 for Residential installations and an Accelerated Capital Cost Allowance for Commercial

Local: Incentives available

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Nova Scotia

Federal: Up to $5,000 for Residential installations and an Accelerated Capital Cost Allowance for Commercial

Newfoundland and Labrador

Federal: Up to $5,000 for Residential installations and an Accelerated Capital Cost Allowance for Commercial

Yukon

Federal: Up to $5,000 for Residential installations and an Accelerated Capital Cost Allowance for Commercial

Northwest Territories

Federal: Up to $5,000 for Residential installations and an Accelerated Capital Cost Allowance for Commercial

Nunavut

Federal: Up to $5,000 for Residential installations and an Accelerated Capital Cost Allowance for Commercial