Tax Deduction for Interest on Loans for Energy Efficiency (California)

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place	California
Name	Tax Deduction for Interest on Loans for Energy Efficiency
Incentive Type	Personal Deduction
Applicable Sector	Residential
Eligible Technologies	Lighting, 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, Advanced metering
Active Incentive	No
Implementing Sector	State/Territory
Energy Category	Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs
Amount	100% of interest from loan
Start Date	2001-10-01
Program Administrator	California Franchise Tax Board
References	DSIRE

Summary

This personal tax deduction allows taxpayers to deduct the interest paid on loans used to purchase energy efficient products or equipment for a residence in California. The deduction is for loans from a publicly-owned utility company for the purchase of energy-efficient heating, ventilation, air-conditioning, lighting, solar, advanced metering of energy usage, windows, insulation, zone heating products, and weatherization systems. Customers of publicly-owned utility companies that do not offer customer financing may be able to deduct the interest from a home equity or home improvement loan used to purchase energy efficient products and equipment.

Publicly-owned utility companies must issue a federal income tax Form 1098, or similar form, to notify their customers of their eligibility for this deduction. Furthermore, this deduction may not be taken if a tax credit is taken for the purchase of the energy efficient equipment. Contact the IRS for more information.

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

Authority 1:	CA Revenue and Taxation Code § 17208.1
Date Effective	2001-10-01
Date Enacted	2001-10-01

Incentive Contact

Contact Name	Tax Specialist - FTB
Department	California Franchise Tax Board
Address	PO Box 942840
Place	Sacramento, California
Zip/Postal Code	94240-0040
Phone	(800) 852-5711
Phone 2	(916) 845-6500
Website	http://www.ftb.ca.gov/

Contact Name	Information Specialist - IRS
Department	Internal Revenue Service
Address	1111 Constitution Avenue, N.W.
Place	Washington, District of Columbia
Zip/Postal Code	20224
Phone	(800) 829-1040
Website	http://www.irs.gov

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