Idaho Solar Energy Deduction

Idaho State Tax Commission

Available Solar & Renewable

About This Program

Idaho allows a deduction from taxable income equal to 40% of the cost of qualifying solar energy systems for four consecutive years, effectively deducting 100% of system cost over time. Can be combined with federal solar tax credit.

State tax deduction reduces taxable income; actual savings depends on tax bracket

Official source site checked live on 2026-06-17.

Data last verified 2026-06-09. How we verify our data.

Key Details

  • Deduct 40% of solar system cost per year for 4 years
  • Applies to solar electric and solar thermal systems
  • Available to all Idaho taxpayers
  • Combines with federal 30% solar tax credit
  • Reduces state taxable income

How to Apply

Get free help applying Visit Official Program Page Track this program

(208) 334-7660

A grant-savvy contractor in Ammon, ID can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

You will likely need a contractor to apply

Projects like this almost always need a licensed contractor, and many grants ask for a written estimate as part of your application. Lining up a contractor in Ammon early keeps your application moving.

Get matched with a contractor

Each program sets its own contractor rules. Check the official program page for exact requirements.

Your application paperwork

Documents you will likely need

  • Your federal tax return for the year of the work (this benefit is claimed on your taxes, not through a separate application).
  • Proof you own and live in the home (deed, recent mortgage statement, or property tax bill).
  • A government-issued photo ID for every owner on title.
  • A written estimate from a licensed contractor for the work (many programs require this to apply).
  • A recent utility bill for the home (energy and weatherization programs use it to confirm service and usage).
  • The program's own application form, completed (use the official link or phone number on this page).
Download this checklist (PDF)

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Ongoing state tax benefit

Questions about this program?

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