Tax season is upon us! You’ve made the wise decision and invested in solar. Now what?
Both the Hawaii state and United States federal governments offer generous tax credits for new solar PV system installations. The federal tax credit is 30 percent of a system’s installed cost and applies to all systems installed before December 31, 2016. Please note that there is no longer a $2,000 cap on qualified solar electric property expenditures for systems installed after December 31, 2008.
35% Hawaii State Tax Credit
The Hawaii Energy Tax Credit allows solar customers to claim an income tax credit of 35% of the cost of equipment and installation of a solar photovoltaic system. A credit that exceeds the taxpayer’s income tax liability may be carried forward to subsequent years until exhausted.
Credits are capped based on property and system type as follows:
- Single-family PV installations: credit is capped at $5,000 per system
- Multifamily PV installations: credits for multi-family PV systems are capped at $350 per system
Fill out these forms:
30% Federal Tax Credit
The Energy Policy Act of 2005 (H.R. 6, Sec. 1335) established a 30% tax credit for the purchase and installation of residential solar electric systems. Individuals may take a 30% credit for each photovoltaic system. The credit is scheduled to expire at the end of 2016. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. To be eligible for the credit, a system must be “placed in service” or activated on or after January 1, 2009, and on or before December 31, 2016.
Fill out this form:
Neither Sunetric nor its employees are tax professionals. The tax information provided herein is provided as a guide only; please consult your tax advisor for official, professional guidance.