Hawaii is blessed with lots of great sunshine. Many Hawaii home owners are taking advantage of this by using solar energy to heat water or help power their homes. This not only saves money but it helps reduce environmental pollution and usage of non-renewable resources. Hawaii desiring to be less dependent on non-renewable resources offers tax credits for solar and other systems using renewable resources to help offset taxpayer conversion cost.
An area that may have slipped by many of us is a recent temporary administrative rule regarding the solar credits available effective January 1, 2013. The change caps the amount of credit homeowners can take for photovoltaic systems which are hooked into their electrical system to $5,000 and requires a minimum system output capacity of 5 kilowatt hours to be eligible for the credit.
Solar for heating water and wind energy did not fall under the administrative rule change.
Make sure you coordinate your solar installation with a reputable and qualified solar company and your tax advisor.
For more information please see Frequently Asked Question for Renewable Energy Technologies Income Tax Credits issued by the Department of Taxation and a copy of the State’s Temporary Administrative Rules relating to the credit.