The Tax Credit - Energy Policy Act of 2005 is extended through 2008

If you are considering using geoexhange energy for your building, home or company, you have probably already heard about some of the many reasons why it is a good idea. The more you know about geothermal energy, the more you can see why it works for so many people. While it may cost you a bit more in the beginning with installation to get a geothermal system installed, the savings you will find in the coming years will more than cover this.

The benefits of energy from geothermal sources are plenty. You can help reduce global warming, save on your energy costs and help the environment. Because the government understands the importance of promoting geothermal energy and heat pumps, they are offering tax breaks to companies and organizations that choose to use geothermal energy.

Both geothermal and wind energy companies were given tax breaks from Congress back in 2006 and from this date forward. Lawmakers have extended for an additional year, a renewable energy production tax credit of 1.9 cents per KW hour of energy that is created by new investments in geothermal energy as well as solar and wind technologies.

For now, the geothermal energy tax credit is set to expire at the start of 2008, which may be renewable. This is just another advantage geothermal customers have to look forward to. The tax credit is expected to equal $1 million or more for investors of this new energy source. Officials in the industry say that these are savings that can also be passed down to the energy customers as well.

When you look at the big pictures of geothermal energy, it only makes sense. You can save money on your bill as well as help the environment and our future. It is no surprise really that the government wants to encourage professionals in the industry to keep striving to make this energy source more affordable and feasible to the average consumer.

Geothermal energy works because it harnesses steam and hot water from underground to operate turbines and generate electricity. California is the largest producer of the energy source with Nevada, coming in second. Much of the western United States is taking part in this plan to increase the use of geothermal energies and it is hoped that will support of things like this tax break, it will become more commonly used in other parts of the world as well.

These tax credits allow the companies to manufacture more geothermal energy producing plants and also to perform more studies and research into the industry as well as pass those savings on to the customers making more people willing to try geoexchange energy themselves.

The tax credits and extensions mean more developments in the area of geothermal energy and in a shorter period of time. This makes alternative geothermal energy easier for the average consumer to one day use in their homes and office buildings. Commercial geothermal systems are already making a huge impact on the energy industry and will continue to do so at an even more rapid rate with the incentive of tax credits.

Middle Tennessee Electric Membership Corporation offers incentives for its residential customers to inhabit energy efficient homes. A $1,000 rebate is available for customers who build new Energy Star qualified homes. Rebates are also offered for qualifying heat pumps and electric water heaters. Please call (615) 896-2785 to learn more.

Below is a table of anticipated tax credits and energy savings for energy-efficient home improvements (as of November 2005):

* Source: ENERGYSTAR.gov

** The IRS will determine final tax credit amounts.  As more information becomes available, it will be posted on our web site.