Save Money and Contribute To A Cleaner Kauai with Solar Power
Hawaii has the highest number of solar installations per capita in the United States. The Islands are blessed with an abundance of sunshine which makes solar power very productive. Solar power is very economical since Kauai has electricity prices that are among the highest in the nation.
Before you begin the process of installing solar on your Kauai home it pays to thoroughly research your options in order to reduce costs and maximize your financial benefits. Tax credits, rebates and incentives make solar power a very attractive option for Kauai homeowners.
You may decide to install solar just to heat your water (e.g., a solar thermal hot water system) or to produce your home’s electricity. Solar electricity generation is accomplished directly with a photovoltaic (PV) system which converts sunlight into electric current.
Tax Credits for Hawaii Solar Installations
Both the federal government and the State of Hawaii offer tax credits for new solar photovoltaic system installations. Following is a brief overview of the state and federal tax credits available for solar on Kauai.
Hawaii State Tax Credit for Solar Installation
The State of Hawaii allows an income tax credit for 35% of the solar customer’s cost for installation and equipment for a solar PV system. If the credit is more than your income tax liability for the year then you are allowed to carry the credit forward each year until you have used it up.
There are some caps on the Hawaii State solar tax credit including a cap of $5,000 for each solar system installed for single families, and $350 for multi-family PV installations.
Federal Tax Credit for Solar Installation
The federal tax credit for solar installations is 30% of the total cost of the installed system until Dec. 31, 2016. The credit covers residential solar electric systems and this includes both the purchase and installation. Like the Hawaii state tax credit, if the federal tax credit exceeds the taxpayer’s liability then it can be carried forward to the next tax year.
Coldwell Banker Bali Hai Realty agents and employees are not tax professionals and this information is provided only as a general guide. Please consult your tax advisor for professional guidance, and see the IRS and State of Hawaii government websites for specific tax credit guidelines.