Rebates

The State of Virginia provides the option for any county, city, or town to exempt or partially exempt solar energy equipment and recycling equipment from local property taxes.  This status is targeted toward non-commercial participants; commercial entities are fully exempt from state and local taxes under Commercial Property Tax Exemption for Solar.

The solar equipment and installation has to be inspected and certified by the local building department or the Department of Environmental Quality to provide the value of the system for the purpose of determining tax credit. The statute broadly defines solar energy equipment as any that is

Utah's income tax credit for renewable energy systems includes provisions for both residential and commercial applications. The Utah Office of Energy Development administers the tax credit and has responsibility for revising the tax credit rules and certifying systems as eligible for the credit. Legislation (Section 5) enacted in 2007 extended these tax credits through at least 2012. On or before this time, and every five years thereafter, the Utah Tax Review Commission must review the tax credit and make recommendations as to whether the tax credit should be continued, modified, or repealed. This legislation also expanded the tax credit language

Companies in Texas engaged solely in the business of manufacturing, selling, or installing solar or wind energy devices are exempt from the franchise tax. The franchise tax is Texas’s equivalent to a corporate tax. There is no ceiling on this exemption, so it can be a substantial incentive for solar and wind businesses.

For the purposes of this exemption, a solar energy device means "a system or series of mechanisms designed primarily to provide heating or cooling or to produce electrical or mechanical power by collecting and transferring solar-generated energy. The term includes a mechanical or chemical device that has

Texas allows a corporation to deduct the cost of a solar energy device from the franchise tax in one of two ways:

• The total cost of the system may be deducted from the company's taxable capital or,
• 10% of the system's cost may be deducted from the company's income.  

Both taxable capital and a company's income are taxed under the franchise tax, which is Texas's equivalent to a corporate tax. 

For the purposes of this deduction, a solar energy device means "a system or series of mechanisms designed primarily to provide heating or cooling or to produce electrical or mechanical

The Ohio Air Quality Development Authority (OAQDA) provides assistance for new air quality projects in Ohio, for both small and large businesses. For qualifying projects, OAQDA can provide a 100 percent exemption from the tangible personal property tax (on property purchased as part of an air quality project), real property tax (on real property comprising an air quality project), a portion of the corporate franchise tax (under the net worth base calculation), sales and use tax (on the personal property purchased specifically for the air quality project only) as long as the bond or note issued by OAQDA is outstanding

Note: On September 17, 2024, the Director of the Division of Property Valuation issued a guidance memo on the applicability of this exemption to battery energy storage systems (BESS), finding that the exemption does not apply to BESS attached to a renewable energy system, although standalone BESS may qualify for a commercial and industrial machinery exemption.

Kansas statute exempts renewable energy equipment from property taxes if an application for an exemption is filed for the property on or before December 31, 2016. For applications for exemptions filed after December 31, 2016, a property tax exemption is limited to the 10

NOTE: On October 2016, the PA Public Service Commission (PUC) issued a second final rulemaking order amending net metering and Alternative Energy Portfolio Standards (AEPS) regulations. Changes include clarifying provisions for meter aggregation, revisions to the interconnection rules and other minor amendments. The documents associated with the case can be accessed at Docket L-2014-2404361.

In 2006 the PA Public Utilities Commission (PUC) adopted net-metering rules and interconnection standards for net-metered systems and other forms of distributed generation (DG) pursuant to the Alternative Energy Portfolio Standards (AEPS) Act of 2004. In 2007, H.B. 1203 amended AEPS and expanded net metering. Revised

Iowa allows a sales tax exemption for solar, wind, and hydroelectricity equipment. As of August 2024, the Iowa sales tax rate is 6%.

Wind

For wind energy, the exemption includes the total cost of wind energy equipment and all materials used to manufacture, install, or construct wind energy systems. The exemption does not apply to equipment used to construct a plant to manufacture wind energy systems.

Solar

Effective July 1, 2006, solar energy equipment is also exempt from the state sales tax. Solar equipment means any equipment that is used to convert incident solar radiation to energy, or equipment used

Originally enacted in 1976, the Hawaii Energy Tax Credits allow individuals or corporations to claim an income tax credit of 20% of the cost of equipment and installation of a wind system and 35% of the cost of equipment and installation of a solar thermal or photovoltaic (PV) system.* 

For solar thermal water heating systems, the maximum allowable credits are as follows:

• Single family residential property is eligible for a credit of 35% of the actual cost or $2,250, whichever is less;
• Multi-family residential property is eligible for a credit of 35% of the actual cost or $350 per unit

Vermont allows municipalities the option of offering an exemption from the municipal real and personal property taxes for certain renewable energy systems (Note: state property taxes would still apply). Eligible systems include but are not limited to "windmills, facilities for the collection of solar energy or the conversion of organic matter to methane, net-metered systems ... and all component parts thereof, but excluding land upon with the facility is located." Adoption of this exemption varies by municipality, but the exemption generally applies to the total value of the qualifying renewable energy system and can be applied to residential, commercial, and