Minnesota Geothermal Heat Pump Association

INCENTIVES

There are several incentives available for geothermal installations. You can find available incentives by visiting the Geothermal Incentive Locator. You will need to select Minnesota and your local utility to find available incentives.

For commercial incentives, the following are available:

The Investment Tax Credit (Section 48)
A 6–30% tax credit for commercial geothermal heat pump costs under Section 48 of the Internal Revenue Code.

For residential incentives, the following is available:

As of January 1, 2026, the broad 30 percent personal income tax credit for homeowner-owned systems has concluded. This marks a transition in how the government supports clean energy, but does not affect state and utility/co-op incentives, nor the cost savings of operating a geothermal system.

Additional incentives may be available. You can use the Database of State Incentives for Renewables & Efficiency

Minnesota Geothermal Heat Pump Association

NOTE NEW CONTACT INFORMATION

Phone: 651-760-8611 | mnghpa@voltametrics.com

428 Minnesota Street, Suite 500 | Saint Paul, MN 55101