Tax Breaks from Geothermal Use

Geothermal energy is not a new concept but it is becoming more popular now that there is an increase in the desire for people to protect the future and our environment. With global warming a scare and gas prices rising, people are considering other energy sources.

Did you know that there are many benefits to choosing geothermal heat or energy for your home or building and these extend beyond just more affordable energy bills? While it is true that geothermal energy sources will usually cost you a bit more in the beginning, they can save you from 25-40% on your heating and cooling bills. While the installation can be pricey, it will more than pay for itself within the first year of use and the savings will continue for as long as you have your geothermal system in place.

The government understands the importance of finding newer, more efficient energy sources and they understand the benefits to geothermal heating and cooling sources which is why they are offering tax breaks to companies and organizations who use geothermal energy. The Energy Policy Act of 2005 also has outlined helpful tax breaks for people who use geothermal energy.

In 2006, wind energy and geothermal energy companies were given tax breaks from Congress and these tax breaks will continue. Geothermal promoters can expect to see tax breaks that continue each year. The US Department of Energy has more information about possible tax breaks and related information.

Individual states may also offer tax breaks to companies who produce geothermal energy and also to those who choose to use it in their own buildings. State tax breaks are offered to many companies that produce geothermal energy. In addition, some state tax breaks maybe offered to companies and businesses who choose to use geothermal energy in their own buildings. You can check with your state officials to find out if tax breaks exist and what they are.

In addition, officials in the industry believe that these tax breaks and savings can be passed down to the customer as well. Everyone can save while doing something that is great for the environment. These tax breaks are just another reason for you to consider using geothermal heat or cooling in your home or building.

Geothermal energy works by harnessing the natural temperatures in the earth's surface to heat and cool the home. California is the largest producer of geothermal energy in the country and Nevada comes in second. Many other states, including much the Western US are jumping in on the opportunity to save on their bill and help the environment with better, natural sources of energy.