Idaho Solar and Geothermal Tax Deduction

Idaho State Tax Commission

Available Solar & Renewable

About This Program

Idaho state income tax deduction for 40% of the cost of installing solar panels or geothermal systems, up to $5,000 per year for up to four consecutive years (total potential deduction of $20,000).

40% of installation cost deductible, capped at $5,000/year for 4 years; estimate for single year

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

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

Key Details

  • State tax deduction for 40% of solar/geothermal costs
  • Up to $5,000 deduction per year for 4 years
  • Total potential deduction of $20,000
  • Combines with federal 30% tax credit
  • Claim on Idaho state income tax return

How to Apply

Get free help applying Visit Official Program Page Track this program

(208) 334-7660

A grant-savvy contractor in Rathdrum, 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 Rathdrum 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 Idaho tax return

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