Solar Power Tax Credits and Tax Breaks

Almost all 50 states provide some type of solar power tax credits for energy efficiency improvements or renewable energy projects. The tax breaks are categorized as being for: personal, corporate, sales, or property taxes.

Personal solar tax credits are applied directly to your state income tax when you file.

Corporate tax breaks give you credits, exemptions, and deductions on your corporate tax filings.

Sales tax credits give an exemption from paying sales tax on certain products when purchased.

Property tax breaks allow your property taxes to be exempt from increasing as a result of the increased property value from the addition of your new home solar power system.

Just remember to consult with a tax attorney to ensure that you report these improvements properly. You can direct them to the DSIRE website as well.

As stated on the previous page your best resource for finding the most updated information on solar tax credits or breaks will be at the Database of State Incentives for Renewables and Efficiency (DSIRE).

The wonderful people at the North Carolina State University Solar Center have been kind enough to build a large database of the most up-to-date information on all the solar tax credits and breaks available to you.

If you are filing for your tax credits this year here is a link to the IRS solar power tax credit forms and here is a link to the DSIRE website explaining the tax credits.

Below is an example of a personal tax credit from the DSIRE website.

solar power tax credits

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