TAX INCENTIVES

Tax Exemptions

According to SEIA, solar tax exemptions come in two forms: property tax exemptions and sales tax exemptions.

  • Property tax exemptions: A solar energy system often adds value to the residential of commercial property where the system is installed. States that have solar property tax exemptions allow homeowners or business to exclude that added value from the valuation of their property for tax purposes. Currently, the majority of U.S. states offer property tax exemptions for renewable energy. Because property taxes are collected by local municipalities and taxing authorities, some states have granted those authorities the option of allowing the property tax incentive for solar systems.

  • Sales tax exemptions occur when a homeowner or business can purchase a solar power system without paying sales tax on the purchase. This incentive reduces the up-front cost of installing solar power. Currently, 29 U.S. states offer sales tax exemptions for solar energy.

An excellent resource for learning about solar-related policies and incentives in any U.S. state is updated regularly by the NC Clean Energy.