Personal Tax Incentives

From Open Energy Information

Personal tax incentives include personal income tax credits and deductions. Many states offer these incentives to reduce the expense of purchasing and installing renewable energy or energy efficiency systems and equipment. The percentage of the credit or deduction varies by state, and in most cases, there is a maximum limit on the dollar amount of the credit or deduction. An allowable credit may include carryover provisions, or it may be structured so that the credit is spread out over a certain number of years. Eligible technologies vary widely by state. In recent years, the federal government has offered personal tax incentives for renewables and energy efficiency. [1]


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Personal Deduction Incentives

IncentiveIncentive TypePlaceApplicable SectorEligible TechnologiesActive
Deductions for Clean-Fuel Vehicles and Refueling Property (Federal)Personal DeductionUnited StatesCommercial
Industrial
Residential
No
Energy-Saving Equipment Deduction (Arkansas)Personal DeductionArkansasResidentialPassive Solar Space Heat
Solar Water Heat
Solar Space Heat
No
Income Tax Deduction for Energy Efficiency Upgrades (Idaho)Personal DeductionIdahoResidentialBuilding Insulation
Caulking/Weather-stripping
Duct/Air sealing
Windows
Yes
Income Tax Deduction for Energy-Efficient Products (Virginia)Personal DeductionVirginiaResidentialClothes Washers
Dishwasher
Refrigerators
Water Heaters
Furnaces
Boilers
Heat pumps
Central Air conditioners
Programmable Thermostats
Fuel Cells
Yes
Income Tax Deduction for Solar-Powered Roof Vents or Fans (Indiana)Personal DeductionIndianaResidentialOther Distributed Generation TechnologiesYes
Income Tax Subtraction for Energy-Efficient Residences (Arizona)Personal DeductionArizonaResidential
Construction
Installer/Contractor
Comprehensive Measures/Whole BuildingNo
Puerto Rico - Tax Deduction for Solar Energy Systems (Puerto Rico)Personal DeductionPuerto RicoResidentialSolar Pool Heating
Solar Water Heat
Yes
Qualifying Wood Stove Deduction (Arizona)Personal DeductionArizonaResidentialBiomassYes
Qualifying Wood Stove Deduction (Idaho)Personal DeductionIdahoResidentialNo
Residential Alternative Energy Tax Deduction (Idaho)Personal DeductionIdahoResidentialBiomass
Ground Source Heat Pumps
Passive Solar Space Heat
Photovoltaics
Solar Space Heat
Solar Water Heat
Wind
Geothermal Electric
Yes
Tax Deduction for Home Energy Audits and Energy Efficiency ImprovementsPersonal DeductionMissouriResidentialCustom/Others pending approval
Unspecified technologies
Yes
Tax Deduction for Interest on Loans for Energy Efficiency (California)Personal DeductionCaliforniaResidentialLighting
Chillers
Furnaces
Boilers
Heat pumps
Central Air conditioners
Caulking/Weather-stripping
Duct/Air sealing
Building Insulation
Windows
Custom/Others pending approval
Solar Water Heat
Solar Space Heat
Photovoltaics
Daylighting
No
Wood-Burning Heating System Deduction (Alabama)Personal DeductionAlabamaResidentialBiomassYes


Personal Exemption Incentives


Personal Tax Credit Incentives

IncentiveIncentive TypePlaceApplicable SectorEligible TechnologiesActive
Advanced Energy Tax Credit (Personal) (New Mexico)Personal Tax CreditNew MexicoCommercialSolar Thermal Electric
Photovoltaics
Geothermal Electric
Energy Storage
Yes
Agricultural Biomass Income Tax Credit (Personal) (New Mexico)Personal Tax CreditNew MexicoAgriculturalBiomassYes
Alternative Energy Development Incentive (Personal) (Utah)Personal Tax CreditUtahCommercial
Industrial
Solar Thermal Electric
Photovoltaics
Landfill Gas
Wind
Biomass
Hydroelectric energy
Geothermal Electric
CHP/Cogeneration
Small Hydroelectric
Yes
Alternative Energy Investment Tax Credit (Personal) (Montana)Personal Tax CreditMontanaCommercial
Industrial
Biomass
Fuel Cells using Renewable Fuels
Geothermal Electric
Landfill Gas
Photovoltaics
Small Hydroelectric
Solar Thermal Electric
Wind
Yes
Alternative Energy Production Tax Credit (Personal) (Pennsylvania)Personal Tax CreditPennsylvaniaCommercial
Industrial
Residential
Solar Water Heat
Solar Space Heat
Solar Thermal Electric
Solar Thermal Process Heat
Photovoltaics
Landfill Gas
Biomass
Hydroelectric energy
Geothermal Electric
Fuel Cells
Ground Source Heat Pumps
Municipal Solid Waste
CHP/Cogeneration
Anaerobic Digestion
Renewable Fuels
Other Distributed Generation Technologies
Wind
No
Alternative Fuel Vehicle Credit - Personal (Georgia)Personal Tax CreditGeorgiaResidentialNo
Alternative Fuel Vehicle Tax Credit (West Virginia)Personal Tax CreditWest VirginiaResidentialRenewable Fuel VehiclesNo
Alternative Fuel Vehicle and Refueling - Personal Tax Credit (Colorado)Personal Tax CreditColoradoResidentialRenewable Transportation Fuels
Renewable Fuel Vehicles
No
Alternative Fuel Vehicle and Refueling Station Personal Tax Credit (Kansas)Personal Tax CreditKansasResidentialNo
Alternative Vehicle Conversion Credits - Personal (Louisiana)Personal Tax CreditLouisianaResidentialRenewable Fuel Vehicles
Refueling Stations
No
Bio-Heating Oil Tax Credit (Personal) (Maryland)Personal Tax CreditMarylandCommercial
Residential
BiodieselYes
Biomass Energy Tax Credit (Personal) (South Carolina)Personal Tax CreditSouth CarolinaIndustrialAnaerobic Digestion
Biomass
CHP/Cogeneration
Landfill Gas
Yes
Clean Energy Incentive Act (Personal Credit) (Maryland)Personal Tax CreditMarylandResidentialSolar Water Heat
Solar Space Heat
Photovoltaics
Landfill Gas
Biomass
No
Clean Energy Production Tax Credit (Personal) (Maryland)Personal Tax CreditMarylandCommercial
Residential
Multi-Family Residential
Agricultural
Solar Thermal Electric
Photovoltaics
Landfill Gas
Wind
Biomass
Hydroelectric energy
Geothermal Electric
Municipal Solid Waste
Anaerobic Digestion
Tidal Energy
Wave Energy
Ocean Thermal
Yes
Clean Energy Tax Credit (Personal) (Georgia)Personal Tax CreditGeorgiaResidentialSolar Water Heat
Solar Space Heat
Photovoltaics
Wind
Ground Source Heat Pumps
No
Clean Fuel Vehicle Tax Credit - Personal (Utah)Personal Tax CreditUtahResidentialRenewable Fuel VehiclesNo
Clean-Burning Motor Fuel or Electric Vehicle Personal Credit (Oklahoma)Personal Tax CreditOklahomaResidentialRenewable Fuel VehiclesNo
Energy Conservation Installation Credit (Montana)Personal Tax CreditMontanaMulti-Family Residential
Residential
Boilers
Building Insulation
Caulking/Weather-stripping
Central Air conditioners
Chillers
Doors
Duct/Air sealing
Furnaces
Heat pumps
Lighting
Lighting Controls/Sensors
Programmable Thermostats
Water Heaters
Windows
Yes
Energy Conservation Tax Credits - Competitively-Selected Projects (Personal) (Oregon)Personal Tax CreditOregonCommercial
Industrial
Nonprofit
Schools
Local Government
State Government
Tribal Government
Agricultural
Institutional
Water Heaters
Chillers
Furnaces
Boilers
Heat pumps
Central Air conditioners
Compressed air
Caulking/Weather-stripping
Duct/Air sealing
Building Insulation
Windows
Doors
Siding
Roofs
Processing and Manufacturing Equipment
Agricultural Equipment
Comprehensive Measures/Whole Building
Custom/Others pending approval
Solar Water Heat
Solar Thermal Electric
Biomass
Geothermal Electric
Ground Source Heat Pumps
Yes
Energy Conservation Tax Credits - Small Premium Projects (Personal)Personal Tax CreditOregonAgricultural
Commercial
Industrial
Institutional
Local Government
Schools
State Government
Tribal Government
Agricultural Equipment
Boilers
Building Insulation
Caulking/Weather-stripping
Central Air conditioners
Chillers
Comprehensive Measures/Whole Building
Compressed air
Custom/Others pending approval
Doors
Duct/Air sealing
Furnaces
Heat pumps
Processing and Manufacturing Equipment
Roofs
Siding
Water Heaters
Windows
Unspecified technologies
Solar Water Heat
Yes
Energy Efficiency Tax Credits (Personal) (Kentucky)Personal Tax CreditKentuckyInstaller/Contractor
Multi-Family Residential
Residential
Building Insulation
Central Air conditioners
Doors
Heat pumps
Lighting
Water Heaters
Windows
Boilers
Furnaces
Yes
Energy Efficient Home Improvements Tax Credit (Michigan)Personal Tax CreditMichiganResidentialBuilding Insulation
Clothes Washers
Dishwasher
Furnaces
Refrigerators
Water Heaters
Windows
No
Energy Efficient Manufactured Homes Incentive Tax Credit (South Carolina)Personal Tax CreditSouth CarolinaResidentialCustom/Others pending approvalYes
Energy Efficient Residential Construction Tax Credit (Personal) (Oklahoma)Personal Tax CreditOklahomaConstruction
Residential
Building Insulation
Caulking/Weather-stripping
Central Air conditioners
Comprehensive Measures/Whole Building
Doors
Duct/Air sealing
Furnaces
Heat pumps
Roofs
Windows
Yes
Energy Savings Tax Credit (Personal) (Indiana)Personal Tax CreditIndianaCommercial
Residential
Central Air conditioners
Water Heaters
Furnaces
Programmable Thermostats
No
Ethanol Investment Tax Credit - Personal (Ohio)Personal Tax CreditOhioResidentialEthanolNo
Geothermal Heat Pump Tax Credit (Personal) (New Mexico)Personal Tax CreditNew MexicoAgricultural
Commercial
Residential
Ground Source Heat PumpsYes
Geothermal Tax CreditPersonal Tax CreditIowaResidentialGround Source Heat PumpsYes
Geothermal Tax Credit (North Dakota)Personal Tax CreditNorth DakotaResidential
Estates
Trusts
Geothermal Electric
Ground Source Heat Pumps
Yes
Green Building Tax Credit Program (Personal) (New York)Personal Tax CreditNew YorkCommercial
Construction
Multi-Family Residential
Comprehensive Measures/Whole Building
Daylighting
Fuel Cells
Passive Solar Space Heat
Photovoltaics
Solar Space Heat
Solar Water Heat
No
Income Tax Credit Carryover (Colorado)Personal Tax CreditColoradoCommercial
Residential
Solar Thermal Electric
Photovoltaics
Landfill Gas
Wind
Biomass
Hydroelectric energy
Geothermal Electric
Anaerobic Digestion
No
Income Tax Credit for Green Buildings (Personal) (Maryland)Personal Tax CreditMarylandCommercial
Industrial
Multi-Family Residential
Comprehensive Measures/Whole Building
Fuel Cells
Photovoltaics
Wind
No
Investment Tax Credit (Vermont)Personal Tax CreditVermontCommercial
Industrial
Agricultural
Solar Water Heat
Solar Space Heat
Solar Thermal Electric
Solar Thermal Process Heat
Photovoltaics
Wind
Biomass
Geothermal Electric
Fuel Cells
Ground Source Heat Pumps
CHP/Cogeneration
Fuel Cells using Renewable Fuels
Microturbines
Yes
Non-Residential Solar & Wind Tax Credit (Personal) (Arizona)Personal Tax CreditArizonaCommercial
Industrial
Nonprofit
Schools
Local Government
State Government
Tribal Government
Fed. Government
Agricultural
Institutional
Passive Solar Space Heat
Solar Water Heat
Solar Space Heat
Solar Thermal Electric
Solar Thermal Process Heat
Photovoltaics
Wind
Solar Pool Heating
Daylighting
Yes
Personal Income Tax Credit for Alternative Fuel Motor Vehicle Conversion (Montana)Personal Tax CreditMontanaResidentialRenewable Fuel VehiclesNo
Puerto Rico - Solar Tax Credit (Personal) (Puerto Rico)Personal Tax CreditPuerto RicoResidentialSolar Thermal Electric
Photovoltaics
No
Refundable Clean Heating Fuel Tax Credit (Personal) (New York)Personal Tax CreditNew YorkResidentialBiodieselYes
Renewable Electricity Facility Tax Credit (Personal) (Kansas)Personal Tax CreditKansasAgricultural
Commercial
Industrial
Biomass
Geothermal Electric
Landfill Gas
Photovoltaics
Small Hydroelectric
Solar Thermal Electric
Hydroelectric energy
Wind
No
Renewable Energy Production Tax Credit (Personal) (Arizona)Personal Tax CreditArizonaCommercialBiomass
Landfill Gas
Photovoltaics
Solar Thermal Electric
Wind
Yes
Renewable Energy Production Tax Credit (Personal) (Iowa)Personal Tax CreditIowaAgricultural
Commercial
Industrial
Institutional
Residential
Rural Electric Cooperative
Schools
Anaerobic Digestion
Biomass
Hydrogen
Landfill Gas
Photovoltaics
Solar Thermal Electric
Wind
Municipal Solid Waste
CHP/Cogeneration
Renewable Fuels
Yes
Renewable Energy Production Tax Credit (Personal) (New Mexico)Personal Tax CreditNew MexicoCommercial
Industrial
Agricultural
Solar Thermal Electric
Photovoltaics
Landfill Gas
Wind
Biomass
Municipal Solid Waste
Anaerobic Digestion
Yes
Renewable Energy Systems Tax Credit (Personal) (Utah)Personal Tax CreditUtahCommercial
Multi-Family Residential
Residential
Anaerobic Digestion
Biomass
Geothermal Electric
Ground Source Heat Pumps
Hydroelectric energy
Landfill Gas
Passive Solar Space Heat
Photovoltaics
Solar Pool Heating
Solar Space Heat
Solar Thermal Electric
Solar Thermal Process Heat
Solar Water Heat
Wind
Yes
Renewable Energy Tax Credit (Personal) (Kentucky)Personal Tax CreditKentuckyMulti-Family Residential
Residential
Ground Source Heat Pumps
Passive Solar Space Heat
Photovoltaics
Solar Space Heat
Solar Water Heat
Wind
Yes
Renewable Energy Tax Credit (Personal) (Nebraska)Personal Tax CreditNebraskaResidentialAnaerobic Digestion
Fuel Cells
Geothermal Electric
Hydroelectric energy
Landfill Gas
Photovoltaics
Solar Thermal Electric
Wind
Fuel Cells using Renewable Fuels
Yes
Renewable Energy Tax Credit (Personal) (North Carolina)Personal Tax CreditNorth CarolinaCommercial
Multi-Family Residential
Residential
Anaerobic Digestion
Biodiesel
Biomass
CHP/Cogeneration
Daylighting
Ethanol
Ground Source Heat Pumps
Hydroelectric energy
Landfill Gas
Methanol
Passive Solar Space Heat
Photovoltaics
Solar Pool Heating
Solar Space Heat
Solar Thermal Electric
Solar Thermal Process Heat
Solar Water Heat
Wind
Small Hydroelectric
Yes
Renewable Energy Tax Credit for Manufacturers (Personal) (Arizona)Personal Tax CreditArizonaIndustrial
Manufacturers
Solar Thermal Electric
Photovoltaics
Landfill Gas
Wind
Biomass
Anaerobic Digestion
Fuel Cells using Renewable Fuels
Yes
Residential Alternative Energy System Tax Credit (Montana)Personal Tax CreditMontanaResidentialBiomass
Fuel Cells using Renewable Fuels
Ground Source Heat Pumps
Passive Solar Space Heat
Photovoltaics
Small Hydroelectric
Solar Space Heat
Solar Water Heat
Wind
Yes
Residential Energy Conservation Tax Credit (District of Columbia)Personal Tax CreditDistrict of ColumbiaResidentialClothes Washers
Dishwasher
Refrigerators
Dehumidifiers
Ceiling Fan
Water Heaters
Lighting
Lighting Controls/Sensors
Furnaces
Boilers
Heat pumps
Central Air conditioners
Programmable Thermostats
Caulking/Weather-stripping
Duct/Air sealing
Building Insulation
Windows
Doors
Roofs
Comprehensive Measures/Whole Building
No
Residential Energy Efficiency Tax Credit (Federal)Personal Tax CreditUnited StatesResidentialBuilding Insulation
Water Heaters
Biomass
Boilers
Central Air conditioners
Doors
Furnaces
Heat pumps
Roofs
Windows
Yes
Residential Energy Tax Credit (Oregon)Personal Tax CreditOregonResidentialWater Heaters
Furnaces
Heat pumps
Heat recovery
Duct/Air sealing
Passive Solar Space Heat
Solar Water Heat
Solar Space Heat
Photovoltaics
Wind
Biomass
Fuel Cells
Ground Source Heat Pumps
Solar Pool Heating
Fuel Cells using Renewable Fuels
Yes
Residential Geothermal Systems Credit (Montana)Personal Tax CreditMontanaResidentialGround Source Heat PumpsYes
Residential Renewable Energy Income Tax Credit (Massachusetts)Personal Tax CreditMassachusettsResidentialPhotovoltaics
Solar Space Heat
Solar Water Heat
Wind
Yes
Residential Renewable Energy System Tax Credit (Rhode Island)Personal Tax CreditRhode IslandResidentialSolar Water Heat
Solar Space Heat
Photovoltaics
Wind
Ground Source Heat Pumps
Yes
Residential Renewable Energy Tax Credit (Federal)Personal Tax CreditUnited StatesResidentialFuel Cells
Ground Source Heat Pumps
Photovoltaics
Solar Water Heat
Wind
Fuel Cells using Renewable Fuels
Yes
Residential Renewable Energy Tax Credit (Personal) (Rhode Island)Personal Tax CreditRhode IslandResidentialGround Source Heat Pumps
Photovoltaics
Solar Space Heat
Solar Water Heat
Wind
No
Residential Solar Energy Tax Credit (West Virginia)Personal Tax CreditWest VirginiaResidentialPhotovoltaics
Solar Space Heat
Solar Water Heat
No
Residential Solar Tax Credit (New York)Personal Tax CreditNew YorkResidential
Multi-Family Residential
Solar Water Heat
Solar Space Heat
Photovoltaics
Yes
Residential Solar and Efficiency Tax Credit - Personal (Massachusetts)Personal Tax CreditMassachusettsResidential
Multi-Family Residential
Equipment Insulation
Furnaces
Boilers
Programmable Thermostats
Duct/Air sealing
Building Insulation
Windows
Solar Water Heat
No
Residential Solar and Wind Energy Systems Tax Credit (Arizona)Personal Tax CreditArizonaResidentialPassive Solar Space Heat
Solar Water Heat
Solar Space Heat
Photovoltaics
Wind
Solar Pool Heating
Daylighting
Yes
Solar Energy Systems Tax Credit (Personal) (Iowa)Personal Tax CreditIowaCommercial
Residential
Agricultural
Passive Solar Space Heat
Solar Water Heat
Solar Thermal Electric
Solar Thermal Process Heat
Photovoltaics
Yes
Solar Energy and Small Hydropower Tax Credit (Personal) (South Carolina)Personal Tax CreditSouth CarolinaCommercial
Residential
Solar Water Heat
Solar Space Heat
Photovoltaics
Daylighting
Small Hydroelectric
Yes
Solar Market Development Tax Credit (New Mexico)Personal Tax CreditNew MexicoCommercial
Residential
Agricultural
Solar Water Heat
Solar Space Heat
Solar Thermal Process Heat
Photovoltaics
Yes
Solar and Wind Energy Credit (Personal) (Hawaii)Personal Tax CreditHawaiiCommercial
Residential
Multi-Family Residential
Solar Water Heat
Solar Space Heat
Photovoltaics
Wind
Yes
Solar or Wind Energy System Credit - Personal (California)Personal Tax CreditCaliforniaResidentialPhotovoltaics
Wind
No
Sustainable Building Tax Credit (Personal) (New Mexico)Personal Tax CreditNew MexicoCommercial
Residential
Nonprofit
Multi-Family Residential
Comprehensive Measures/Whole Building
Passive Solar Space Heat
Solar Water Heat
Solar Space Heat
Photovoltaics
Wind
Daylighting
Yes
Tax Credit for Solar Energy Systems on Residential Property (Personal) (Louisiana)Personal Tax CreditLouisianaResidentialSolar Water Heat
Solar Space Heat
Photovoltaics
Yes
Wind Energy System Personal Tax Credit (Hawaii)Personal Tax CreditHawaiiResidentialWindNo
Woody Biomass Harvesting and Processing Tax Credit (Personal) (Wisconsin)Personal Tax CreditWisconsinAgricultural
Commercial
BiomassYes

References

  1. DSIRE Glossary