Idaho’s home to more than potato farms; the Gem State also boasts some lucrative solar incentives. From Idaho Falls to Boise to Coeur d’Alene, Idahoans are saving more than ever by switching to solar power. Learn more about the tax credits and state-funded loan programs available for people going solar in Idaho.
Solar tax credits in Idaho
Idaho offers some of the best solar tax incentives in the country. When you purchase a solar panel system in Idaho, keep in mind these favorable tax incentives:
Residential Alternative Tax Deduction
With the Residential Alternative Tax Deduction, you can deduct 40 percent of the cost of your solar panel equipment and installation from your personal income taxes. You can also deduct 20 percent of the cost each year for the following three years after installation. The deduction is maxed out at $5,000 per year, or $20,000 total.
Federal tax credit for solar
When you purchase a solar panel system in Idaho, you can take advantage of the federal Investment Tax Credit (ITC). With the ITC, you can claim 30 percent of your solar equipment and installation costs as a credit towards your federal taxes. Keep in mind that this tax credit is stepping down in the near future; starting to 2020, the tax credit will drop from 30 percent to 26 percent.
Other top Idaho solar incentives
Idaho net metering
Net metering gives credits to solar homeowners for the electricity that their solar panels generate. The State of Idaho does not require utilities to provide net metering to their solar customer; however, the three large utilities in the state – Rocky Mountain Power, Idaho Power, and Avista Utilities – currently offer net metering incentives to their customers.
Low-interest state energy loans
The Idaho Governor's Office of Energy Resources (OER) State Energy Loan Program offers low-interest loans for homeowners installing solar panel systems. With this loan, you can borrow up to $15,000 for five years at an interest rate of 4 percent.
Solar easement laws
In Idaho, you can enter into a solar easement with your neighbors to ensure that you have continued access to sunshine, uninhibited by tree growth, new structures, and more. All solar easements are voluntary.