|Program Type||Residential Alternative Energy Tax Deduction|
Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps
|Amount||40 percent for the first year, and 20 percent per year for the following three years|
|Required Documentation||Dependent on method of installation (either you or your contractor)|
|Official Web Site||http://legislature.idaho.gov/idstat/Title63/T63CH30SECT63-3022C.htm|
Idaho’s Residential Alternative Energy Tax Deduction covers a variety of green technologies including solar, wind and certain forms of biomass. The deduction allows a purchaser of an alternative energy system to deduct costs “attributable to the construction, reconstruction, remodeling, installation or acquisition of the alternative energy device with the system” from their taxes over a period of four years. Under the deduction the purchaser can deduct 40 percent of the system’s value from their taxes in the first year, and 20 percent of the value for three years. Homeowners can claim a maximum deduction of $5,000 per year for a maximum of $20,000. You or your contractor will have to compile documentation to be eligible for the deduction.
The deduction is also combinable with federal alternative energy tax breaks. Basically if the value of the system is less than $20,000, when combined with federal tax credits the purchaser can gain more than the full value of a solar system or alternative energy back.
This particular deduction is claimed on the Idaho Supplemental Schedule, Form 39R, and you can contact the Idaho State Tax Commission at http://tax.idaho.gov for more details.