Heat pumps are generally considered energy efficient and often qualify for several different incentives. One of the incentives available is the Maryland Geothermal Heat Pump Grant, which offers up to $3,000 in rebates and $500/ton in grants. Montgomery County also offers a property tax credit up to $6,500 for homeowners who install geothermal heat pumps.

Air source heat pumps qualify for a federal tax credit equal to 30 percent of the system including installation costs for up to $1,500. Geothermal heat pumps also qualify for a 30 percent tax credit including installation costs, but they are not subject to the $1,500 cap.