Tax Credits

An estimated 80,000 single family homes, multi-unit dwellings and institutional facilities in Hawai'i are served by solar water heaters. According to an analysis by the National Renewable Energy Laboratory,

"... solar water heating is cost effective at any location in the Hawaiian Islands."

State income tax credits for solar water heating systems of 35 percent of the installed cost (up to stated limits and subject to reductions) are available. See the Department of Taxation's Website.

Federal tax credits are also available:

Information on the Federal business investment credit (Form 3468 and instructions) may be found at: http://www.irs.ustreas.gov/formspubs/index.html.

The residential credit may be taken for systems installed beginning 1/1/06. Information is available from the IRS: http://www.irs.gov/

Incentives of up to $1000 per system are being offered to electric utility customers who currently have electric water heaters; for more information,

Residents of O'ahu, Maui, Moloka'i, Lana'i, and the Big Island: see http://www.hawaiienergy.com/.