Solar Tax Incentives Information:

The American Recovery and Reinvestment Act of 2009

The American Recovery and Reinvestment Act of 2009, signed on February 17th, 2009 by Barack Obama, extends and expands on already existing renewable energy and home energy efficiency credits. The bill removed caps on renewable energy technologies such as small wind and geothermal heat pumps and increased the maximum amount on other energy efficient improvements. Hi-Power Solar specializes in home energy efficiency, including the design and installation of integrated renewable energy systems for residential homes. Many homeowners are confused about the incentives available to them, so we have outlined the highlights of the new economic stimulus bill followed by tables containing specific details about the new federal tax incentives.

Residential PV Tax Incentives

The State of Hawai’i and the U.S. Federal Government currently offer generous tax credits for new Photovoltaic installations.  

35% Hawai’i State Tax Credits : The current administrative ruling for Hawai’i State tax credit is 35%of the actual cost for the equipment and system installation cost. (The State of Hawai’i will review the tax credit availability yearly to determine the following years eligibility.)
A credit that exceeds the taxpayer’s income tax liability may be carried over to the following years until exhausted.

Credits are capped based on property and system type as follows:
–  Single‐family PV installations: Credit is capped at $5,000 per 5kw system

For More information please review  this Hawaii State Tax RETITC document

30% Federal State Tax Credits :  Individuals may take a 30% credit for each system with no cap. This policy shall continue to be in place until December 31, 2016. If the federal tax credit exceeds tax liability, the remaining amount may be carried over to the upcoming years until exhausted. To be eligible for the credit, a system must be activated and in service on or before December 31, 2016.

For more information please review this Federal Guideline document

 

Solar Tax Forms and Documents

Property-Tax-Exemption-Form

Form 5695 Residential Energy Credits

Form N342 Renewable Energy Tax Credits

Form N342 Instructions

Cost Allocation Worksheet

*Note: None of Hi‐Power Solar employees are tax professionals. The above information is merely a guide and to be used for informational purposes. Please consult with your accountant or tax advisor for professional guidance.