Idaho Residential Solar Tax Deduction

Idaho State Tax Commission

Available Solar & Renewable

About This Program

Idaho state income tax deduction for residential solar installations. Homeowners can deduct 40% of solar system costs or $5,000 (whichever is less) per year for up to four years, combined with federal solar tax credit.

State deduction of up to $5,000 per year, deductible over 4 years maximum

Official program page checked live on 2026-06-17.

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

Key Details

  • 40% of solar system cost or $5,000 deduction annually
  • Available for up to 4 consecutive years
  • Combines with 30% federal solar tax credit
  • Must be Idaho resident taxpayer
  • System must be installed on Idaho property

How to Apply

Get free help applying Visit Official Program Page Track this program

(208) 334-7660

A grant-savvy contractor in Blackfoot, 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 Blackfoot 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: Claim on annual state tax return

Questions about this program?

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