Idaho Solar Tax Credits
When asked about what incentives are available for homeowners installing solar, most companies will whisper “tax credits” into the void, hoping that will help close the deal. Transparency is important to us. You probably have a vague idea that some incentives are available, but figuring out what these tax credits are and if they’re right for you can be difficult. We’re here to make it easy.
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Idaho Residential Alternative Energy Tax Deduction
The Idaho Residential Alternative Energy Tax Deduction works to make the installation of your solar panels more affordable. The tax credit applies to the cost of installing your solar panels in a residential property. In the first year of installation, you can deduct 40% of the total cost of the energy system from your income when filing taxes. For the next three years, you can deduct an additional 20% of the total cost each year with the maximum deduction you can claim in any single year is $5,000. The total maximum deduction you can take over the course of the credit is capped at $20,000.
As always this tax credit may not apply to everybody based on financial situation, and won’t be applicable unless you have a tax liability. It’s best to talk to your tax professional to learn more.
Federal Investment Tax Credit
The Federal Investment Tax Credit is similar to the Idaho Tax Deduction, but can also be applicable for homeowners who have already installed solar panels as well. Any solar systems installed in 2020 and 2021 can get a 26% tax credit. Any installations taking place between 2022-2032 are able to get a 30% tax credit. Actually, this credit was set to lower substantially in 2023, until the federal government renewed the 30% for another 10 years, showing their commitment to keeping this tax credit for homeowners. Unlike the Idaho credit, there is no maximum amount that can be claimed.
Again, eligibility for this credit varies. Your solar system must have been installed between 2017-2034, be at your local residence, and you must own the solar system rather than lease. Talk to your tax professional before banking on this and other tax credits.
Other Information Regarding Solar Energy in Idaho
Great strides have been made in the state of Idaho to provide homeowners with solar incentives while making solar energy more affordable and less of a hassle. Solar panels are a well protected right in Idaho, with many areas such as Boise, prioritizing the permitting process. This makes permits in Boise 2-4 times faster to obtain than other places in the state. Additionally, solar energy laws in the state prevent HOAs from banning or restricting solar energy, and give homeowners the right to have their solar panels unobstructed from neighbors or natural interference.
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The Idaho Experts
Serving Idaho with almost a decade of industry experience, our team brings seasoned knowledge to every project. Our experts have installed thousands of solar panels, and implement the best Idaho practices for getting the most out of your solar panels.
Energy Guaranteed
All installations are backed by our powerful production guarantee. As part of our service and partnership, we guarantee a certain kwh produced by your new solar panels. If this number is not being met, we fix it for free.
Backed By the Best
All of our work is backed by the best warranties in Idaho. This includes a “leak-free” Guarantee for 20 years, workmanship warranty for 25 years, and a 5-year production guarantee. All at no additional cost to you.
You’re the Star
Let us be your guides on the journey to energy independence. At the heart of our mission is an unwavering commitment to your satisfaction and success. A dedicated project manager ensures consistent, visible communication with your specific needs constantly in the spotlight.