Yes, many U.S. states offer tax exemptions for solar equipment, including both sales tax exemptions and property tax exemptions.
Sales Tax Exemptions for Solar Equipment
- At least 18 states exempt solar systems from state sales tax. These include Arizona, Colorado, Connecticut, Florida, Iowa, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, New York, Ohio, Rhode Island, Tennessee, Utah, Vermont, Washington, and Wisconsin.
- Some states like Arizona provide a 100% sales and use tax exemption for solar and battery technologies, which helps reduce the upfront cost of solar installation.
- States without a state sales tax like Alaska, Delaware, Montana, New Hampshire, and Oregon naturally don’t charge sales tax on solar equipment.
Property Tax Exemptions for Solar Equipment
- 36 states offer property tax exemptions for solar energy systems, allowing homeowners and businesses to exclude the added home value from solar installations in property tax assessments.
- Examples include New Jersey, which exempts solar systems from local property taxes if used for on-site electricity or heating, and Iowa, which exempts the added property value of solar systems from property tax for 5 years.
- States like Kansas provide a property tax exemption for renewable energy installations for up to 10 taxable years after installation.
- Some states offer partial exemptions or phased tax benefits. For example, Virginia offers 80% exemption for 5 years, then 70% for 5 years, then 60% on solar property value.
Summary Table of Typical Solar Tax Exemptions
| Type of Exemption | Number of States Offering | Examples of States |
|---|---|---|
| Sales Tax Exemption | At least 18 states | Arizona, Colorado, Florida, Maryland, New York |
| Property Tax Exemption | 36 states | New Jersey, Iowa, Kansas, Virginia, Massachusetts |
These tax exemptions significantly reduce the cost burden of installing solar energy systems and encourage broader adoption.
Because exemptions vary by state and sometimes by locality, it is advisable to consult specific state resources or tax advisors to understand current, precise benefits available.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-states-with-tax-exemptions-for-solar-equipment/
