There are numerous rebates available for the installation of solar energy. Apart from the well-known federal rebate, there are many other tax offsets, depending on the state you live in.
The US Federal rebate give you 30% back on your taxes if you purchase a solar energy or related system for your home or business. The good news is there is no cap on this rebate, but the bad news is that you have to put the money back and you won’t get it back until you submit your taxes for the year. Everything you want to know about this rebate can be found on the Database of State Incentives for Renewable Energy.
States like Washington and California exempt sales tax for those buying equipment for production of renewable energy. Solar energy users have to pay no sales at all in Washington. In California, purchase of any component which is used for production, generation, design or assembly of an alternative energy source is exempted from sales tax.
A total of 32 states give property tax credits for renewable energy generation or use. While some states allow reduction in tax paid on property, others offer a 100% tax waiver for green homes and buildings.
A tax reduction is given on the net income tax accrued for using alternative energy sources like solar energy in homes. Income tax is also eligible for reduction for sustainable living in green buildings, purchase of solar energy appliances and setting up of solar panels.
All these solar power rebates vary from state to state and locality to locality. For easy access of detailed information on solar tax credits in your state and locality, visit the energy department’s rebate database.
A tax waiver or exemption is allowed in several states for investing in renewable energy systems, both commercial and residential. Oregon has formulated the business energy tax credit for individuals or companies investing in development and generation of solar or other alternative energy.