Minnesota Residents Should Take Advantage of Geothermal Tax Credits

Are you thinking about installing a geothermal system in your Minnesota home, but have concerns about costs? At Hartmann Well Drilling, we understand this common concern. When inquired about this, we ask clients, “Do you know about geothermal tax credits?”

Here are some basic facts about geothermal heating and cooling:

• Geothermal energy uses the earth’s heat to heat and cool homes and businesses. Minnesota geothermal systems research indicates it is the one of the best choices for providing energy to the state’s population.
• A geothermal system installation involves the drilling of wells in geothermal reservoirs to bring to the surface hot water. Once the water reaches the wells, it’s used to generate electricity by the steam.
• Advantages of geothermal energy include the fact its clean energy, in no way detrimental to land. This energy is reliable, flexible and does not send money overseas for fossil fuels.

Despite these facts, cost is one of the biggest factors people use to decide if they want to install a system. In order to promote renewable energy options, the U.S. Congress passed the Energy Improvement and Extension Act of 2008, which gives a tax credit of 30% of the total investment for residential ground-loop or groundwater-loop systems. Those installing commercial systems are offered a 10% credit.

Those who wish to take advantage of this are encouraged to keep in their records a detailed invoice. Even though no proof of purchase is required to claim the credit, it’s best to keep this handy in case of an audit.

To qualify, the geothermal heat pumps must meet or exceed EnergyStar requirements. The tax credit is available until Dec. 31, 2016. To see what it can do for your Minnesota home, contact Hartmann Well Drilling today by visiting www.HartmannWellDrilling.com.