Residential Alternative Energy Tax Deduction (Idaho)

Summary

Last modified on December 17, 2014.

Financial Incentive Program

Place	Idaho
Name	Residential Alternative Energy Tax Deduction
Incentive Type	Personal Deduction
Applicable Sector	Residential
Eligible Technologies	Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Electric, Geothermal Heat Pumps
Active Incentive	Yes
Implementing Sector	State/Territory
Energy Category	Renewable Energy Incentive Programs
Amount	40% in the first year; 20% per year for next three years
Maximum Incentive	5,000 per year; 20,000 total deduction
Program Administrator	Idaho Tax Commission
References	DSIREDatabase of State Incentives for Renewables and Efficiency

Summary

This statute allows taxpayers an income tax deduction of 40% of the cost of a solar, wind, geothermal, and certain biomass energy devices used for heating or electricity generation. Taxpayers can apply this 40% deduction in the year in which the system is installed and can also deduct 20% of the cost each year for three years thereafter. The maximum deduction in any one year is $5,000. The total maximum deduction is $20,000.

Eligible biomass energy devices include a pellet stove or EPA-certified wood stove if:

• it is in the taxpayer's residence,
• it replaces an old wood stove that does not meet EPA requirements,
• the purchase and replacement occurs within the same year, and
• the old wood stove is dropped off at a Department of Environmental Quality (DEQ)-approved site within 30 days.
  (Also applies to new natural gas or propane heating units that meet these criteria.)

To qualify for the deduction, the home in which the system is intalled must have existed, been under construction, or had a building permit on or before January 1, 2002, and must be located within Idaho.

The deduction for full year residents is calculated on the Idaho Supplemental Schedule 39R, section B, with the result transferred to Idaho Form 40. For part year and non-residents of Idaho, the deduction is calculated on Idaho Form 39NR, section B, with the results transferred to Idaho Form 43. Forms, instructions, and publications for the current and previous years can be found here.

Incentive Contact

Contact Name	Public Information
Department	Idaho Tax Commission
Address	800 Park Blvd. #4
Place	Boise, Idaho
Zip/Postal Code	83722
Phone	(208) 334-7660
Phone 2	(800) 972-7660
Email	taxrep@tax.idaho.gov

Authorities (Please contact the if there are any file problems.)

Authority 1:	Idaho Code § 63-3022C

• Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.