Solar tip to the wise: Keeping yourself updated on solar tax credits is important as a homeowner with solar! We’ve always said, “the best time to go solar was yesterday, and the second best time is today!” You don’t want to miss out on receiving a full tax credit! With exciting new battery incentives we are seeing big checks sent out to our clients and for the first time in Hawaii’s solar history, NEGATIVE HECO BILLS!
There are two great tax incentives that you should take advantage of while you still can:
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30% Federal tax credit. There has been a drastic change in Solar Tax Credits for PV and Solar Hot Water systems! Congress recently passed an extension of the ITC, raising it to 30% throughout 2022-2032! (Systems installed on or before December 31, 2019 are also eligible for a 30% tax credit) The Solar Tax Credit will then drop to 26% in 2033 and 22% in 2034.
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Hawaii State tax credit: 35% of the system cost (capped to $5,000). This is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. For example, claiming a $1,000 federal tax credit reduces your federal income taxes due by $1,000..
Did you know that these tax credits benefit both homeowners and the state of Hawaii?
Tax credits are great for homeowners because they shorten the ROI on your solar investments. Studies by the University of Hawaii show that every dollar that runs through the solar tax credits turns into $1.50 back into the local economy. Homeowners then buy goods and services with that money.
