Hawaii Energy Tax Credits
| Program Type | Tax Credit |
|---|---|
| Technologies | Photovoltaics, Solar Thermal Electric, Solar Water Heating, Solar Space Heating, Wind |
| Amount | Up to $5,000 |
| Required Documentation | Proof of ownership |
| Official Web Site | http://www.hawaii.gov/dbedt/info/energy/renewable/solar |
Hawaii has offered this renewable energy state tax credit to residents and businesses since 1976, though the amounts and terms have changed over the years. The tax credit covers the year the system was purchased and installed. The credit is only available to the purchaser of the system. So, if a developer builds 10 homes and pays for photovoltaics (PV) or solar water on each, the developer is considered the purchaser and is eligible for the credits. But if the developer offers a system as an add-on, for which the buyer must pay extra, or if a homeowner contracts to have a system installed on their home, then they are the beneficiary of the credit.
As of 2010, single family homes are eligible for a tax credit of 35 percent of the actual cost of the solar system and installation or $5,000 (whichever is less) for installing a PV or solar thermal energy system. Multi-family residential properties like condominiums or apartment buildings are eligible for a credit of 35 percent of the actual cost of the system and installation $350 per unit (whichever is less).
Credits are given for each fully individual system with its own inverter, array, and connection to the site’s electrical system. So, if a homeowner has two fully independent PV arrays, each tied independently to the home’s electrical system, the system is eligible for two credits. Or if a homeowner’s farm has two separate systems installed, both would be eligible for the credit. The state recently clarified requirements because of credit abuse.
The tax credit also is offered for solar hot water heating installations, though residential homeowners can only qualify for a credit of up to $2,250 or 35 percent of the cost of equipment and installation, whichever is less. Multi-family residences qualify for a credit of 35 percent of the cost of equipment and installation or $350 per unit, whichever is less.
