* The tax credit information contained in this website is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the IRS.

RESIDENTIAL

Residential Renewable Energy Tax Credit

A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year.

Incentive Type: Personal Tax Credit

Web Site: https://www.energystar.gov/taxcredits

Administrator: U.S. Internal Revenue Service

Applicable sectors: Residential

Incentive Amount: 30%

Form: IRS Form 5695: Residential Energy Credits

Residential Alternative Energy Tax Deduction

This statute allows taxpayers an income tax deduction of 40% of the cost of a solar, wind, geothermal, and certain biomass energy devices used for heating or electricity generation. Taxpayers can apply this 40% deduction in the year in which the system is installed and can also deduct 20% of the cost each year for three years thereafter. The maximum deduction in any one year is $5,000. The total maximum deduction is $20,000.

Implementing Sector: State

Category: Financial Incentive

State: Idaho

Incentive Type: Personal Tax Deduction

Administrator: Idaho Tax Commission

Eligible Renewable/Other Technologies: Solar – Passive, Solar Water Heat, Solar Space Heat, Geothermal Electric, Solar Photovoltaics, Wind (All), Biomass, Geothermal Heat Pumps, Wind (Small)

Applicable Sectors: Residential

Incentive Amount: 40% in the first year; 20% per year for next three years

Maximum Incentive: $5,000 per year; $20,000 total deduction

Authorities: Idaho Code § 63-3022C The deduction for full year residents is calculated on the Idaho Supplemental Schedule 39R, section B, with the result transferred to Idaho Form 40. For part year and non-residents of Idaho, the deduction is calculated on Idaho Form 39NR, section B, with the results transferred to Idaho Form 43.

Idaho Power – Net Metering

Net metering allows customers to offset their energy use by generating power on their property and connecting it to a utility’s grid. When customers generate more than they consume, the electric meter “spins” backwards, providing a kilowatt-hour (kWh) credit for energy produced to offset energy consumed. Systems connected to the grid are referred to as “interconnected.”

Implementing Sector: Utility

Category: Regulatory Policy

State: Idaho

Incentive Type: Net Metering

Web Site: https://www.idahopower.com/aboutus/businesstobusiness/generationinterconnect

Utilities: Idaho Power Co

Eligible Renewable/Other Technologies: Solar Thermal Electric, Solar Photovoltaics, Biomass, Hydroelectric, Fuel Cells using Non-Renewable Fuels, Wind (Small), Hydroelectric (Small), Fuel Cells using Renewable Fuels

Applicable Sectors: Commercial, Industrial, Residential, Federal Government, Agricultural

Applicable Utilities: Idaho Power

System Capacity Limit: 25 kW for residential and small commercial, 100 kW for all others

Aggregate Capacity Limit: None

Net Excess Generation: Credited to customer’s next bill as a per kWh credit. Carried forward indefinitely.

Ownership of Renewable Energy Credits: Customer

Meter Aggregation: Allowed

Low-Interest Energy Loan Programs

The Idaho Governor’s Office of Energy Resources (OER) State Energy Loan Program offers low-interest loans to make building improvements that will conserve energy and increase energy efficiency projects in Idaho.

State: Idaho

Incentive Type: Loan Program

Web Site: https://www.energy.idaho.gov/financialassistance/energyloans.htm

Administrator: Office of Energy Resources

Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Geothermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Geothermal Heat Pumps, Combined Heat & Power, Wind (Small), Hydroelectric (Small), Geothermal Direct-Use

Eligible Efficiency Technologies: Water Heaters, Lighting, Furnaces, Heat pumps, Air conditioners, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Motor VFDs, Agricultural Equipment, Comprehensive Measures/Whole Building, Custom/Others pending approval, Other EE

Applicable Sectors: Commercial, Industrial, Nonprofit, Residential, Agricultural, Multifamily Residential, Institutional

Maximum Loan: Residential: $15,000, All others: $100,000

Loan Term: 4% interest with 5-year term

BUSINESSES AND CORPORATIONS

Business Energy Investment Tax Credit (ITC)

Incentive Type: Corporate Tax Credit

Administrator: U.S. Internal Revenue Service

Eligible Renewable/Other Technologies: Water Heat, Solar Space Heat, Geothermal Electric, Solar Thermal Electric, Solar Thermal Process Heat, Solar Photovoltaics, Wind (All), Geothermal Heat Pumps, Municipal Solid Waste, Combined Heat & Power, Fuel Cells using Non-Renewable Fuels, Tidal, Wind (Small), Geothermal Direct-Use, Fuel Cells using Renewable Fuels, Microturbines

Applicable Sectors: Commercial, Industrial, Investor-Owned Utility, Cooperative Utilities, Agricultural

Incentive Amount: 30% for solar, fuel cells, wind

Form: IRS Form 3468

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