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Federal Renewable Energy Tax Credit (30%)

The Energy Improvement and Extension Act of 2008 removed the cap on this credit to open a window of affordability for homeowners to purchase solar power systems and receive a 30% credit on their investment. The credit is applicable to the actual cost of the products and installation. If any of the 30% credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. To be eligible for the credit with no maximum limit, the system must be "placed in service" on or after January 1, 2009. The credit is scheduled to expire at the end of 2016. Tax advisors can reference the following IRS documents: H.R. 1424:Div. B, Energy Improvement and Extension Act of 2008; Internal Revenue Code: 26 USC § 4 (pdf link.

Hawaii State Renewable Energy Tax Credit (35%)

The Hawaii Energy Tax Credit allows residential properties to claim an income tax credit of 35% of the cost of equipment and installation of a photovoltaic system. The credit for residential property is capped at $5,000. Tax advisors can reference Hawaii Revised Statutes: §235-12.5 and the tax information release number 2007-02.

Disclaimer: The descriptions of tax incentives on this site should not be considered tax advice. Tax incentive information described on this site is available at www.dsireusa.org. Universolar recommends consulting with your tax advisor to determine how these credits should be calculated for your unique financial situation.