Idaho Solar and Geothermal Energy Tax Deduction

Idaho State Tax Commission

Available Solar & Renewable

About This Program

Idaho state tax deduction for residential solar panel and geothermal heat pump installations in Star. Deduct 40% of costs (up to $5,000 per year) from Idaho taxable income for up to 4 consecutive years.

Deduction is 40% of system cost, maximum $5,000 per year for 4 years

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

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

Key Details

  • Deduct up to $5,000 per year for 4 years
  • 40% of solar or geothermal system cost
  • Available to all Star homeowners
  • Applies to Idaho state income tax
  • Combine with federal solar tax credit

How to Apply

Get free help applying Visit Official Program Page Track this program

(208) 334-7660

A grant-savvy contractor in Star, 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 Star 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 program

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