Idaho Tax Guide

Now is the time to go solar in Idaho as the state offers some of the best tax incentives in the country. Going green, lowering your utility payment, and increasing the value of your home are among the top benefits of getting solar on your home. The state of Idaho has extra incentives in place to make the decision even easier! 

Idaho's Residential Alternative Energy TaxDeduction

View information about Idaho’s Residential Alternative Energy TaxDeduction and download Form 39R – Idaho Supplemental Schedule here.

Federal Residential Renewable Energy Tax Incentive

View information about the Federal Residential Renewable Energy Tax Incentive here.  You may download the form from the IRS here.

Residential Alternative Tax Deduction

With the residential alternative tax deduction you can deduct 40% of the total cost of your solar installation from your personal income taxes. After installation you can also deduct 20% of the cost every year for the next three years. The deduction max is $5,000 per year or $20,000 total. 

Federal Tax Incentive

The federal solar tax credit, also known as the investment tax credit (ITC), allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. The ITC applies to both residential and commercial systems, and there is no cap on its value.

Net Metering

Net energy metering is another solar incentive. Net metering allows you to store any excess energy that your panels produce in the electric grid. Net metering also allows you to pull from the electric grid at any time that your panels may be under-producing. Electricity usage fluctuates from month to month, and net metering protects you by storing your excess energy so you can use it at another time.

Idaho is a “Right to Solar” State

Thanks to Idaho’s solar easement law you can work with your neighbors to make sure that nothing shades your solar panel system while the sun is shining. Also, Idaho is a Right to Solar state, so your local zoning authority can prevent developers from prohibiting the installation of solar panels on your home.