Home Solar Tax Credits & Rebates
Sunetric is a full-service solar PV system provider—in addition to handling evaluation, consultation, system design, installation, and followup, our team is staffed with professionals experienced in maximizing your tax benefits. We’ll educate you on the options available, walk you through the advantages of the incentives, and make sure your system is saving you as much money as possible.
Federal Business Solar 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’ on or after January 1, 2009, and on or before December 31, 2016.
- Covers 30% of installed system costs.
- Applies to installed cost of system and up to five years of included maintenance.
- Available for tax year the system is ‘placed in service.’
- Unused portion can be rolled over to subsequent tax years.
- Utilities are excluded.
Hawaii Renewable Energy 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 per housing unit. Tax credit capped at $5,000 per system.
There is also a 24.5% refundable option for those who do not have sufficient tax liability. An exception also exists for people who earn less than $20,000 or $40,000 if married filing jointly that allows them to get the full 35% refundable.
- Covers 35% of installed system cost.
- Credit available for tax year the system is ‘placed in service.’
- No sunset date.
- Tax credit capped at $5,000 per system.
Please Note: 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.