Solar Energy Tax Incentives
Below is a list of renewable energy tax incentive programs in each state:
Alabama – Energy Efficiency and Renewable Energy Incentives
“Alabama residents can qualify through December 31, 2010 to receive a tax credit for making certain energy efficiency improvements to your existing home. You can now receive a tax credit equal to 30% of the cost of the product up to a total of $1,500. For renewable systems the tax credit is equal to 30% of the cost with no upper limit. For more information on how to qualify for these tax credits visit the ENERGY STAR Federal Tax Credits for Consumer Energy Efficiency website.”
Alaska – Alaska Renewable and Solar Energy Incentives Alaska Energy Authority
Renewable Energy Grant Program Incentive Type: State Grant Program
Eligible Renewable/Other Technologies: Solar Water Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Fuel Cells, Geothermal Heat Pumps, CHP/Cogeneration, Hydrothermal, Waste Heat, Transmission or Distribution Infrastructure, Anaerobic Digestion, Tidal Energy, Wave Energy, Geothermal Direct-Use
Applicable Sectors: Commercial, Local Government, Utility, Tribal Government, Only Available for In-State Projects
Arizona – TEP – Renewable Energy Credit Purchase Program
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Solar Pool Heating, Daylighting, Anaerobic Digestion, Small Hydroelectric
Amount: Up-front incentives for PV may be de-rated based on expected performance
Residential grid-tied PV: $0.75/W-DC
Residential off-grid PV: $0.50/W-DC
Non-Residential PV (50 kW or less): $0.75/Watt DC
Arkansas – Incentives/Policies for Renewables & Efficiency
California – California Energy Commission’s Renewable Energy Program
The CPUC’s California Solar Initiative moved the consumer renewable energy rebate program for existing homes from the Energy Commission to the utility companies under the direction of the CPUC. This incentive program also provides cash back for solar energy systems of less than one megawatt to existing and new commercial, industrial, government, nonprofit, and agricultural properties. The CSI has a budget of $2 billion over 10 years, and the goal is to reach 1,940 MW of installed solar capacity by 2016.
Colorado – Colorado Incentives/Policies for Renewables & Efficiency
Connecticut – Solar Photovoltaic Rebate Program – Connecticut Clean Energy Fund
(Residential) •The CCEF offers homeowners who are customers of United Illuminating Co. or Connecticut Light and Power with PV installations connected to the grid.
•Rebate awards start at $1.75/kW for the first 5 kW and move to $1.25/kW for remaining kilowatts (up to additional 5 kW).
•A modification of payment schedule may be possible, however it depends on anticipated system efficiency.
•The capacity for PV system size is 10 kW for this program and installation and inverters must have a warranty of at least 5 years. Photovoltaic systems must have a warranty of at least 20 years.
•Incentives are capped at $15,000 for residences.
Delaware – Green Energy Program (Residential/Commercial)
Qualifying systems: Solar panel PV, wind power, solar water heaters, solar space heaters, geothermal pumps, and fuel cells utilizing clean resources.
Rebate amounts:
•Municipal Utility Green Energy Fund – up to 33.33% of installation and equipment costs with the exception of solar water heaters, which receive a 50% rebate.
•DEC – up to 33.33% of installation and equipment costs for PV and wind energy and 50% of the costs for all other technologies.
•Delmarva Power and Light – up to 25% of installation and equipment costs for all renewable energy systems. Non-profit organizations and government-affiliated institutions receive 35% off overall costs.
•There are no system size restrictions for this program.
Application form
Florida – Florida Renewable Energy Production Tax Credit (Commercial)
In 2006, the state of Florida created a production tax credit for renewable energy to galvanize the production and development of renewable energy manufacturing.
•Qualifying systems: solar thermal electric, wind, PV, hydroelectric, biomass, geothermal electric, CHP/cogeneration, hydrogen, tidal energy, oceanic thermal, wave energy.
•Commercial entities receive $0.01/kWh for generated electricity until June 30, 2010. The state has a budget of $5 million for each fiscal year.
•Credit that is not used may be transferred over to the subsequent year for up to 5 years.
Georgia – Georgia Clean energy tax credit
The clean energy tax credit gives Georgia residents a 35% credit towards the total cost of installation and equipment.
•The credit listings are as follows:
•$2,000 credit limit for geothermal heat pumps
•$2,500 credit limit for domestic solar water heating
•$10,500 credit limit for photovoltaic and wind energy systems.
In order to claim this credit, homeowners must make sure that all equipment and installation has met certification standards.
Hawaii – Hawaii Solar and Wind Energy Credit
This tax credit enables residences and commercial entities to utilize a 20% credit on installation and equipment costs for wind energy systems and 35% for PV and solar thermal systems.
Solar Panel Installations (PV – electric) •Single Family Residency – 35% of overall costs or $5,000 (lesser value prevails).
•Multi-Family Residency – 35% of overall costs or $350/unit (lesser value prevails).
•Commercial – 35% of overall costs or $500,000 (lesser value prevails)
Solar Thermal System Credit: •Single Family Residency – 35% of overall costs or $2,250 (lesser value prevails).
•Multi-Family Residency – 35% of overall costs or $350/unit (lesser value prevails).
•Commercial Solar Thermal – 35% of overall costs or $250,000 (lesser value prevails).
Unused credit may be transferred over to the next taxable year until completely used up.
Idaho – Renewable Energy Tax Deduction
Residential taxpayers are granted an income-tax deduction, which is designed to partially cover the cost of geothermal, wind, solar and biomass energy systems that produce electricity.
•Qualified systems: Solar panel (solar electric PV), solar space heat, passive solar space heat, solar water heat, wind, geothermal heat pumps, biomass.
•This program entails a 40% incometax deduction for the year that the system is installed. Another 20% incometax deduction is granted for the subsequent 3 years after the installation year.
•The deduction for any single year is capped at $5,000 and $20,000 total.
Illinois – Illinois Solar and Wind Energy Rebate Program
The focus of the Solar and Wind Energy Rebate Program, through the State’s Renewable Energy Resources Program, is to encourage utilization of smaller-scale solar and wind energy systems in Illinois.
Eligibility applicants include homeowners, businesses, public sector and non-profit entities who are customers of an electric or gas utility that impose the Renewable Energy Resources and Coal Technology Development Assistance Charge.
The program offers incentives up to 30% of total project cost for residential and business applicants, and 50% for public sector and non-profit entities. The maximum rebate is $30,000.
Indiana – Indiana Solar Thermal (IST) Grant Program
The IST grant program will provide cost share grants to Indiana’s public, non-profit, and business sectors for the purchase and installation of solar water heating systems . Solar energy systems make use of non-fossil fuel resources to produce clean, home-grown thermal energy for heating water. In a time of rising energy costs and increased energy supply volatility, it is vital to our economic future to diversify the portfolio of resources we use to produce energy. The purpose of this grant program is to increase awareness and utilization of solar thermal energy resources as well as to create vocational opportunities for Hoosiers interested in renewable energy. Three facilities, two apartment complexes and one food co-op are taking part in the IST program. Program data will be used to gather additional information on the economic viability of solar thermal energy in Indiana.
Iowa – Iowa Production Tax Credit for Renewable Energies
In 2011, Governor Branstad signed into law House File 672 (HF 672) and House File 590 (HF 590), which make changes to Iowa Code chapters 476B and 476C. Effective May 26, 2011, the total amount of eligibility under Iowa Code chapter 476B is reduced from 150 MW to 50 MW.
Kansas – Kansas Renewable Electric Cogeneration Facility Tax Credit
The Department of Commerce offers a diverse portfolio of financial incentives to Kansas businesses and producers engaged in conventional and renewable energy production.
Kentucky – Tennessee Valley Authority Generation Partners Program
Generation Partners supports homeowners and businesses that install small-scale renewable generating sources – solar panels or wind turbines, for example – on their property. Generation Partners puts ordinary users of TVA power into business generating renewable energy.
The program supplies TVA’s Green Power Switch program with renewable power, making more green power available to consumers and creating a market for green power generation. Generation Partners participants defray the cost of their renewable systems and lower their monthly energy bills through the revenue they receive from the sale of the green power.
Louisiana – Louisiana Tax Credit for Residential Solar and Wind Energy Systems
Louisiana provides a tax credit for the purchase and installation of solar and wind energy systems purchased and installed on or after January 1, 2008. The credit may be applied to personal, corporate or franchise taxes, depending on the entity which purchases and installs the system, but the system must be installed at either a residence or a residential rental apartment complex to be eligible. HB 858, enacted in July 2009, extended the tax credit to taxpayers that purchase and install systems rather than only the owners of the residential property. This legislation also clarifies that only one credit can be taken per system, so if the property is sold, the taxpayer who originally claimed the credit must disclose this, as the new owner will not be eligible for another tax credit on the same system.
Maine – Maine Property Assessed Clean Energy
Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. Maine has authorized certain local governments to establish such programs.
Maryland – Maryland Tax Credit for Clean Energy Production
The Clean Energy Incentive Tax Credit, enacted in 2006, offers Marylanders a state income tax credit for electricity generated by qualified resources of 0.85 cents per kilo-watt hour, and 0.50 cents per kilo-watt hour for electricity generated from co-firing a qualified resource with coal. These credits can be claimed over a period of five years. Annual tax credits cannot exceed one fifth of the initial credit certificate issued by the Maryland Energy Administration. This credit is available to individuals and corporations that build and generate electricity from qualified resources operational on or after January 1, 2006, but before January 1, 2016.
Massachusetts – Massachusetts Residential renewable energy state income tax credit
Massachusetts allows a 15% credit — up to $1,000 — against the state income tax for the net expenditure* of a renewable-energy system (including installation costs) installed on an individual’s primary residence. If the credit amount is greater than a resident’s income tax liability, the excess credit amount may be carried forward to the next succeeding year for up to three years. Eligible technologies include solar water and space heating, photovoltaics (PV), and wind-energy systems. The original use of the system must begin with the taxpayer, and the system should “reasonably be expected to remain in operation for at least five years.”
Michigan – Michigan Photovoltaic Purchase Tariff – Consumers Energy
On July 26, 2011, the Michigan Public Service Commission approved an expansion of Consumers Energy Company’s (Consumers Energy) Experimental Advanced Renewable Program (EARP). This expanded EARP (Program) is part of the Amended Renewable Energy Plan prepared by Consumers Energy in accordance with Public Act 295 of 2008 (2008 PA 295). This Program is limited to 3,000 kilowatts (kW) of capacity, with 1,500 kW reserved for residential systems and 1,500 kW reserved for non-residential systems.
Minnesota - Minnesota Solar Choice Program – Austin Utilities
SOLARCHOICE makes solar electricity affordable today by connecting customers that want to produce solar electricity with other customers that want to support the development of renewable energy by paying a small premium on their utility bill. Customers can actively promote the development of local renewable energy in their communities by becoming either SOLARCHOICE producers or SOLARCHOICE purchasers.
Mississippi – Mississippi Generation Partners Program
Generation Partners supports homeowners and businesses that install small-scale renewable generating sources – solar panels or wind turbines, for example – on their property. Generation Partners puts ordinary users of TVA power into business generating renewable energy.
The program supplies TVA’s Green Power Switch program with renewable power, making more green power available to consumers and creating a market for green power generation. Generation Partners participants defray the cost of their renewable systems and lower their monthly energy bills through the revenue they receive from the sale of the green power.
Missouri – Missouri AmerenUE – Photovoltaic Rebate Program
Ameren Missouri offers rebates to its customers for the installation of net metered photovoltaic (PV) systems on their properties. The rebate is set at $2.00 per DC watt with a maximum rebate of $50,000. Although the program guidelines and application do not list a firm maximum system capacity, the requirement that the system be net metered implicitly limits system size to 100 kilowatts (kW), the maximum size allowed under Missouri’s net metering rules. Only systems that become operational after the opening date of the program (January 1, 2011) are eligible for incentives.
Montana – Montana Alternative Energy Investment Tax Credit
Commercial and net metering alternative energy investments of $5,000 or more are eligible for up to 35 percent tax credit against individual or corporate tax on income generated by the investment. The credit may only be taken against net income produced by the eligible equipment or by certain associated business activities. Associated facilities, manufacturing plants producing alternative energy equipment and new or expanded businesses using the energy generated by the alternative energy investment may use the tax credit.
Nebraska – Nebraska Renewable Energy Corporate Tax Credit
Nebraska offers a production-based tax credit to any producer of electricity generated by wind, solar, geothermal, hydropower, fuel cells or methane gas. To qualify, a system must be placed into service on or after July 14, 2006. The credit allowed may be used to reduce the producer’s Nebraska income tax liability or to obtain a refund of state sales and use taxes paid by the producer. The initial requirement that a facility be at least one megawatt in rated capacity was eliminated in 2007 by L.B. 367, which also made several other amendments. Another requirement that the facility result in zero pollution or emissions, which has prevented the use of this credit in the past, was removed by L.B. 360 of 2011.
Nevada – Nevada Property Tax Exemption for Renewable Energy Systems
In Nevada, any value added by a qualified renewable energy system shall be subtracted from the assessed value of any residential, commercial or industrial building for property tax purposes. Qualified equipment includes solar, wind, geothermal, solid waste and hydroelectric systems used to heat or cool a building, heat or cool water used by a building, or generate electricity used by the building. SB 426 of 2011 clarified that a system installed on one or more buildings and supplying energy to adjacent buildings or an irrigation system in an agricultural operation is eligible for the exemption. This exemption applies for all years following installation.
New Hampshire – New Hampshire Renewable Energy Rebates
New Hampshire enacted legislation (H.B. 1628) in July 2008 requiring the state’s Public Utilities Commission (PUC) to establish and administer a rebate program for certain renewable-energy systems. There are two steps involved in the rebate-application process. Step one is a pre-approval application; step two is the final application. Both steps are required to receive the incentive.
The rebate is equal to $1.25 per watt of nominal generation capacity per residential owner of an eligible facility, up to $4,500 or 50% of system costs, whichever is less. Photovoltaic (PV) systems must have a peak generation capacity of less than five kilowatts (kW), must be located at the owner’s residence, and must be certified as meeting UL 1703 by a nationally-recognized testing laboratory.
New Jersey – New Jersey Property tax exemption for renewable energy systems
In October 2008, New Jersey enacted legislation exempting renewable energy systems used to meet on-site electricity, heating, cooling, or general energy needs from local property taxes. (There is not a state component to property taxes in New Jersey). Eligible renewable energy systems* include solar PV, wind, fuel cells, sustainable biomass, geothermal electric, landfill gas, hydroelectric, resource recovery, wave, and tidal systems that produce electricity. Systems that produce energy from solar thermal energy (e.g., solar hot water) or geothermal energy (e.g., geothermal heat pumps) are also eligible for the exemption. The exemption may be claimed for all qualified systems installed on residential, commercial, industrial, or mixed use buildings as accessory uses.
New Mexico – No state solar energy tax incentives
New York – New York Solar and Wind Energy Tax Incentives
Enacted in August 1997, this personal income tax credit originally applied to expenditures on solar-electric (PV) equipment used on residential property. The credit, equal to 25% percent of the cost of equipment and installation, was expanded in August 2005 to include solar-thermal equipment. The solar-thermal provisions apply to taxable years beginning on and after January 1, 2006. The credit is capped at $3,750 for solar-energy systems placed in service before September 1, 2006, and capped at $5,000 for solar-energy systems placed in service on or after September 1, 2006.
North Carolina – North Carolina Renewable Energy Tax Credit
North Carolina offers a tax credit equal to 35% of the cost of eligible renewable energy property constructed, purchased or leased by a taxpayer and placed into service in North Carolina during the taxable year. The credit has been amended several times since its original inception. House Bill 512 of 2009 extended the eligibility to geothermal equipment, extended the expiration date to December 31, 2015, and allowed the credit to be taken against the Gross Premiums Tax. HB 1829 of 2010 further extended this credit to combined heat and power systems. The credit is subject to various ceilings depending on sector and the type of renewable-energy system.
North Dakota – North Dakota Renewable Energy Tax Credit
North Dakota offers a corporate income tax credit for the cost of acquiring and installing a geothermal, solar, biomass or wind-energy system in a building or on property owned or leased by the taxpayer in North Dakota. For systems installed after December 31, 2000, and before January 1, 2015, the credit is equal to 3% per year for five years of the actual cost of acquisition and installation of the system.
The installation costs do not include costs of redesigning, remodeling or otherwise altering the structure of a building in which the renewable-energy system is installed. If an eligible renewable-energy system is a part of a system that uses other means of energy, only the portion of the total system directly attributable to the cost of the renewable-energy system is included in determining the credit amount.
Ohio – Ohio Renewable Energy Credit (REC) Purchase Program
As part of AEP Ohio’s Renewable Energy Credit (REC) Purchase Program, customers can sell their RECs produced from solar photovoltaic or wind energy systems. One REC is the environmental attributes of one megawatt hour (MWH) of electricity produced from a renewable source. Systems must be located within AEP’s service territory and must have been placed in service on or after January 1, 1998. Only RECs created after July 31, 2008 and before June 30, 2013 qualify for the program. The customer must have an interconnection agreement with AEP Ohio, and the customer must have a utility grade meter installed with their system in order to record energy production. For systems less than 6 kW, customers can use the data tracking system that is built into their inverter if it is approved by the Public Utility Commission of Ohio. All systems must be registered with the State of Ohio, and the RECs must be registered in PJM-GATS.
Oklahoma – Property tax exemption for windpower generators
The state of Oklahoma offers a five year ad valorem property tax exemption for certain windpower generators.
An initial investment of $250,000 and an addition of $250,000 in annual payroll in counties with a population of 75,000 or less is required. If the company is located in a larger county, an additional annualized payroll of $1 million is required to file for the exemption. Windpower generators are exempt from the Oklahoma payroll requirement if there is an increase of $2 million or more in capitol improvements while maintaining or increasing payroll.
Oregon – Oregon state solar rebate program
Energy Trust of Oregon’s Solar Electric Buy-Down Program, launched in May 2003, is available to customers of Pacific Power and PGE who install new photovoltaic (PV) systems on new or existing homes, commercial and community buildings, farms, and municipal facilities. Incentive amounts are as follows:
Residential
For systems owned by homeowners: $1.25/watt-DC (W) installed for Pacific Power customers, with a cap of $5,000 and $1.75/W-DC for PGE customers, with a $20,000 cap per site.
For systems owned by a third party: $1.25/W-DC installed for Pacific Power customers, with a cap of $5,000 and $1.75/W-DC installed for PGE customers, with a cap of $10,000.
Pennsylvania – PA Solar Energy Incentives Program
In July 2008, Pennsylvania enacted legislation providing $650 million to support a variety of renewable energy and energy efficiency technologies. Included in this legislation was a provision authorizing the creation of a $80 million grant and loan program for solar energy technologies. The program is jointly administered by the Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP), under the direction of Commonwealth Finance Authority (CFA). Program guidelines were first issued in April 2009 although they have been revised since that time. Incentives are available to businesses (including non-profits), economic development organizations, and political subdivisions (e.g., local governments, schools, etc.).
The program will offer support for solar technologies in the form of loans, grants and loan guarantees (i.e., grants to be used in the event of a financing default). Eligible facilities are defined as those that generate, distribute, or store solar energy; manufacturing or assembly facilities for solar panels or other solar equipment; and solar technology R&D facilities. This definition includes both solar photovoltaic (PV) and solar thermal systems. All systems must have a lifetime of at least four years. Funds may be used for the following project costs:
Rhode Island – Rhode Island Residential Renewable Energy Tax Credit
Rhode Island offers a personal tax credit for photovoltaic systems (on-grid and off-grid), solar hot-water systems, active solar-heating systems, wind-energy systems and geothermal-energy systems. The tax credit is equal to 25% of the system cost and applies only to residential installations. The credit is available to the resident or business that pays for the system.
Photovoltaic (PV) systems must have a minimum module size of 24 square feet, and must either be connected to the grid or to a battery-storage system. PV systems up to $15,000 are eligible for the full 25% credit. (A resident or business that pays for a PV system that exceeds $15,000 in cost will receive a credit based on a $15,000 system cost.)
South Carolina – SC Solar Energy and Small Hydropower Tax Credit
In South Carolina, taxpayers may claim a credit of 25% of the costs of purchasing and installing a solar energy system or small hydropower system for heating water, space heating, air cooling, energy-efficient daylighting, heat reclamation, energy-efficient demand response, or the generation of electricity in a building owned by the taxpayer. Effective July 1, 2009, SB 1141 expanded the scope of this credit to include small hydropower systems. Only hydropower systems installed after July 1, 2009 are eligible for the tax credit.
The maximum credit a taxpayer may take in any one tax year is $3,500 for each facility or 50% of the taxpayer’s tax liability for that taxable year, whichever is less. Unused credit, or credit that exceeds the annual cap, may be carried forward for 10 years.
South Dakota – South Dakota Property Tax Incentive
In March 2010, South Dakota established a new property tax incentive that replaced two existing property tax incentives for renewable energy. Facilities that generate electricity using wind, solar, hydro, hydrogen generated by another eligible resource, or biomass resources are eligible for this incentive, as are facilities that generate other forms of energy using solar or geothermal resources.
Tennessee – TVA Generation Partners Pilot Program
Generation Partners supports homeowners and businesses that install small-scale renewable generating sources – solar panels or wind turbines, for example – on their property. Generation Partners puts ordinary users of TVA power into business generating renewable energy.
The program supplies TVA’s Green Power Switch program with renewable power, making more green power available to consumers and creating a market for green power generation. Generation Partners participants defray the cost of their renewable systems and lower their monthly energy bills through the revenue they receive from the sale of the green power.
Texas – Solar Energy Devices Business Franchise Tax Exemption
Companies in Texas engaged solely in the business of manufacturing, selling, or installing solar energy devices are exempted from the franchise tax. The franchise tax is Texas’s equivalent to a corporate tax. There is no ceiling on this exemption, so it is a substantial incentive for solar manufacturers.
Utah – Utah Renewable Energy Systems Tax Credit
Utah’s income tax credit for renewable energy systems includes provisions for both residential and commercial applications. The Utah State Energy Program administers the tax credit and has responsibility for revising the tax credit rules and certifying systems as eligible for the credit. Legislation enacted in 2007 extended these tax credits through at least 2012. On or before this time, and every five years thereafter, the Utah Tax Review Commission must review the tax credit and make recommendations as to whether the tax credit should be continued, modified, or repealed. This legislation also expanded the tax credit language to include geothermal resources, and modified the credit calculation for large wind, biomass, and geothermal electric systems. The revised tax credit is applicable to systems placed in service on or after January 1, 2007. Taxpayers wishing to use this tax credit must first apply through the Utah State Energy Program before claiming the tax credit against their Utah state taxes.
Vermont - Vermont Clean Energy Development Fund
Residential solar electric (Photovoltaic) systems – rebate of $1.50 per watt of direct current (DC) installed solar power – limited to 10 kilowatt (kW) ◦Residential solar panel installation rebates are capped at $15,000 (1.50 X 10,000 watts)
Commercial solar electric (Photovoltaic) systems – $1.50/watt DC up to 10 kW; $1.00/watt DC for the next 50 kW (up to 60 kW); and $0.50/watt DC for the next 90 kW of installed solar PV (up to 150 kW) ◦Commercial solar panel installation rebates are capped at $110,000 (1.50 X 10,000) + (1.00 X 50,000) + (.50 X 90,000)
Virginia – Virginia Green Building Incentive Program (Arlington county)
•If a building passes green building standards through the Leadership in Energy and Environmental Design’s (LEED) green building evaluation system, they can be considered for additional benefits, such as bonus densities and/or heights to construction projects. This is evaluated on a case-by-base basis.
•If additional benefits are given, the building may be granted an extra 0.15 to 0.35 floor area ratio. The magnitude of the floor area ratio bonus is dependent upon the certification level of the building.
Washington – Washington Tax Abatement for Solar Manufacturers
Senate Bill 5111, signed by Washington’s governor in May 2005, created a reduced business and occupation (B&O) tax rate for Washington manufacturers and wholesale marketers of solar-electric (photovoltaic) modules, stirling converters, or silicon components of those systems.
In May 2009, Washington enacted SB 6170, effective July 1, 2009. This bill reduced the B&O tax rate to 0.275%, effective October 1, 2009. This tax rate is 43% lower than the standard manufacturing B&O tax rate. This reduced tax rate applies to manufacturers of photovoltaic modules, stirling converters, solar grade silicon, silicon solar wafers, silicon solar cells, thin film solar devices or compound semiconductor solar wafers to be used exclusively in solar energy systems. Originally, stirling converters were not included in this tax abatement, but Senate Bill 5526, effective in July 2011, extended the abatement to stirling converters.
West Virginia – West Virginia Solar Energy Tax Credit
West Virginia passed legislation in June 2009 authorizing its solar energy tax credit for residential installations. The tax credit, which is 30% of the cost to purchase and install the system, is capped at $2,000. Eligible technologies include systems that use solar energy to generate electricity, heat or cool a residence, or provide hot water or solar process heat for use in the residence. Solar systems for heating a pool or hot tub are not eligible. The solar energy systems installed to provide hot water must derive 50% or more of its energy to heat or cool from the sun. If the credit exceeds the taxpayer’s liability, the unused portion of the credit may be carried forward to “each of the next taxable years” until it is used (but may not be carried forward past July 1, 2014).
Wisconsin – Clean Power Partner Solar Buyback Program – Madison Gas & Electric
Customer-generators enrolled in the Madison Gas & Electric (MGE) green power purchase program (Green Power Tomorrow) are eligible to receive a special rate for the power produced from solar photovoltaic (PV) systems. Under this program, the electricity produced from 1 to 10 kilowatt (kW-DC) PV systems will be purchased by MGE at a rate of $0.25/kilowatt-hour (kWh). This rate will apply to all electricity produced by the system. As the program is limited to Green Power Tomorrow participants, customers will purchase electricity from the utility at the normal retail rate plus the green power premium (currently $0.0125/kWh).
Wyoming – Wyoming Renewable Energy Sales Tax Exemption
In 2003, the Wyoming legislature added sales of equipment used to generate electricity from renewable resources to the list of types of sales, purchases and leases which are exempt from the state excise tax. The exemption is limited to the acquisition of equipment used in a project to make it operational up to the point of interconnection with an existing transmission grid. Equipment eligible for the exemption includes wind turbines, solar panels and other generating equipment, control and monitoring systems, power lines, substation equipment, lighting, fencing, pipes and other equipment for locating power lines and poles. Equipment not eligible for the exemption includes tools and other equipment used in construction of a new facility, contracted services required for construction and routine maintenance activities and equipment utilized or acquired after the project is operational.
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