Utility and Tax Incentives
Federal, state, and local governments understand the importance of sustainable energy and the high costs associated with traditional power sources. Utility companies can’t afford to maintain their infrastructure costs as homes use more and more power. That’s why, in most cases, utility and tax incentives can save customers well over 50% on the cost of energy.*
Federal Investment Tax Credit – 30%
The solar investment tax credit (ITC) is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. The federal ITC is based on 30% of the homeowner’s cost to install solar from 2023-2032. On leased systems, Powur collects this incentive and passes the savings on to the homeowner. Don’t wait; prices for solar equipment are on the rise! Hurry and take advantage of this while it lasts.
Hawaii State Incentives
Hawaii offers several financial advantages when it comes to solar energy, such as a federal and state tax credits, that enable residents to afford solar and save money on their electricity.
Hawaii State Tax Credit – 30%
The Hawaii Energy Tax Credit allows owners of single-family homes to claim a state income tax credit up to 35% of the actual cost of the system or $5,000, whichever is less.
Each system is defined as 5 kilowatts (kW); therefore, a 10kW would be eligible for up to $10,000 in Hawaii State Tax Credits. The system must be fully installed and “operational” by 12/31/2023 to claim for the 2023 tax year.
Installing solar panels on your home increases its value up to 20 times your annual energy bill savings. We don’t think you should be penalized for your sustainable decision and many state legislators agree! Currently, new solar installations will be subject to no additional property taxes based on their assessed value.
Increase Home Value
Owning a residential solar energy system installed on your property is considered a capital improvement that can enhance the overall value of your property. This advantageous feature not only has the potential to expedite the sale of your home but also increase its selling price compared to homes lacking solar installations. Furthermore, your investment in this eco-friendly and efficient solar power system contributes to the tax basis of your property. When you decide to sell your home, this tax-based investment can be subtracted from the sale price, thereby reducing the portion of the price that is considered as profit. As a result, this reduction in taxable profit can lead to lower taxes on the sale and potentially even help you avoid capital gains taxes associated with property appreciation.
*Ask your representative about which incentive you’re eligible to receive. Please consult a tax advisor on your ability to claim these nonrefundable tax credits.
