Yes, the government will actually pay for part of your solar investment. Both state and federal programs work for solar installations in Idaho. There are even more programs for businesses buying solar, though I only mention the solar incentives for homeowners here.

Idaho State Tax Deduction

  • The state of Idaho deducts up to $20,000 through the Residential Alternative Energy Tax Deduction to homeowners with solar projects.
  • This is a deduction for state income tax, so you will need to have a tax liability for this to matter. In other words; you must have income tax owed to the state of Idaho.
  • You can see the details for the Idaho tax deduction here: Idaho Governor’s Office of Energy and Mineral Resources

The residential alternative energy tax deduction allows taxpayers an income tax deduction of 40% of the cost of a solar,… This can be applied in the year that the energy system is installed. 20% can be deducted each year for an additional three years. The maximum deduction in any one year is $5,000. The total maximum deduction is $20,000.

The Big Federal Tax Credit

The Investment Tax Credit (ITC) is a tax credit that reduces the amount of federal income tax owed by a business or individual. The ITC is a dollar-for-dollar reduction in the amount of tax owed.

Other incentives

Incentives for solar projects change over time. The two above are the ones you really don’t want to miss out on. You may qualify for further incentives, and a (mostly complete) list can be found on the SEIA website.

Disclaimer: I am not a tax professional, and your solar sales person is probably not either. Please consult a tax professional for further information on solar tax incentives.