How much is the Solar Tax Credit?

The amount credited will be calculated by applying the current tax rate to the amount of the purchase and installation costs of the certified solar energy equipment, facilities or devices. The credit applies for five years and becomes effective beginning the first day of the tax year next succeeding the certification by the division of building and life safety and will remain in effect for that tax year and the following four tax years.

Example: A property is assessed at $300,000. A solar system is then installed with $10,000 of labor and purchased certified solar equipment, facilities or devices. The property’s assessed value remains $300,000.

The property owner submits the solar tax credit application and is approved. The credit amount would be equal to ($10,000 x Tax Rate) and will be applied every year for five years. With a tax rate of 0.96%, the solar tax credit for this property would be: $10,000 x 0.96% = $96 annually ($480 in total over 5 years).

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1. How/when will I receive the Solar Tax Credit?
2. How much is the Solar Tax Credit?