Homeowners can get a Residential Income Tax Credit of 30 percent of the total cost of an installed system. This can be “carried over” each year until it’s used up, or until the program ends, whichever comes first. Businesses and rental property owners can take both this 30 percent tax credit plus federal depreciation savings.
There is no sales tax on equipment or labor for solar electric systems 10 kW or smaller. Systems larger than 10 kW are exempt from 75% of sales tax.
Washington State also pays you a base rate of $0.15 per kWh on ALL energy your system produces, whether it’s used in the building or sent back to the grid. Even better, that base rate jumps to as much as $0.54 per kWh if you use equipment made in-state. This incentive is capped at $5,000.00 per household per year, and the program will continue until at least 2020.
Idaho allows a 100% income tax deduction for individuals who install photovoltaics on their homes. The state also exempts solar equipment from property tax and sales taxes.
Public schools are eligible for grants covering up to 100% of solar system cost.