Are you considering geothermal heating and cooling for your Minnesota home? If so, federal geothermal tax credits combined with Minnesota financial incentive programs can save you thousands on your system installation costs.
In December 2018, the Department of Energy passed the Investment Tax Credit (ITC), a Federal Tax Incentive for geothermal heat pump installation. In December 2020, that federal tax credit was extended through 2023. The state of Minnesota also offers financial incentives for geothermal installations, including credits, grants, loans, and rebate programs.
Federal Geothermal Tax Credit Through 2023
Minnesota homeowners who purchase and install a geothermal heating and cooling system in 2021 or 2022 can qualify for a 26% federal tax credit off the cost of the system and installation. Homeowners who purchase and install a ground-source heat pump in 2023 can qualify for a 22% federal geothermal tax credit.
Both existing homes and new construction are eligible for this credit. Primary residences and secondary homes both qualify; however, geothermal systems installed on rental properties are not eligible for this tax incentive.
To learn more about renewable energy tax credits for geothermal heating and cooling, check out energystar.gov.
Minnesota Geothermal Tax Credit
As a Minnesota homeowner, you may qualify for state-based financial incentives when you install a geothermal heating and cooling system. Electric utility providers in several municipalities throughout the state offer credits and rebates for residential geothermal installations. Grant and loan programs are also available in certain areas.
Credit and rebate amounts vary by utility provider and are typically based on the heating and cooling capacity and energy efficiency of the geothermal heat pump installed. Some utility providers offer a flat-rate financial incentive instead.
To learn more about local geothermal financial incentives you may qualify for through your utility provider, browse the Database of State Incentives for Renewables & Efficiency (DSIRE) website.
Request a Geothermal Heating & Cooling Consultation
Ready to experience the most reliable, long-lasting, and energy-efficient heating and cooling system on the market? Get in touch with our experts at The Comfort Company to schedule a geothermal system consultation today!
We’ll help you determine whether a geothermal heat pump is the right choice for your home and help you take advantage of all the money-saving tax incentives and rebates available to you. To get started, feel free to give us a call at 218-491-1226 or contact us online, and we’ll get in touch with you shortly.