The bill establishes a geothermal heat exchange system rebate program under Minnesota Statutes, section 216C.49, aimed at providing financial assistance to eligible applicants who install geothermal heat exchange technology in their buildings. Eligible applicants include individuals, businesses, nonprofits, government entities, federally recognized Tribes in Minnesota, and religious institutions that demonstrate they have applied for or received a geothermal heat exchange system rebate from the U.S. Department of Treasury under the Inflation Reduction Act of 2022. The program will require applicants to submit documentation, including proof of ownership of the building, an energy audit conducted by a certified professional, and details of the installation costs.

Additionally, the bill appropriates funds for the program, with specific allocations from both the renewable development account and the general fund for fiscal year 2026. The rebate amount is capped at 15% of the geothermal heat exchange system costs, not exceeding $100,000 for a single project, or the total installation cost net of other financial support. The commissioner is tasked with managing the rebate account, prioritizing applications for multifamily housing or commercial buildings owned by nonprofits or government entities, and ensuring that funds remain available until expended.