Plug and Play - Idaho Office of Energy Resources - Idaho gov - energy idaho 2025

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Idaho Residential Alternative Energy Tax Deduction: The residential alternative energy tax deduction allows taxpayers an income tax deduction of 40% of the cost of a solar, wind, geothermal, and certain biomass energy devices used for heating or electricity generation.
The Idaho Governors Office of Energy and Mineral Resources (OEMR) State Energy Loan Program offers low-interest loans to fund energy efficiency projects for single-family homes in Idaho.
The Idaho Governors Office of Energy and Mineral Resources (OEMR) State Energy Loan Program offers low-interest loans to fund energy efficiency projects for single-family homes in Idaho.
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With the Residential Alternative Tax Deduction, you can deduct 40 percent of the cost of your solar panel equipment and installation from your personal income taxes. You can also deduct 20 percent of the cost each year for the following three years after installation.
If you make qualified energy-efficient improvements to your home after Jan. 1, 2023, you may qualify for a tax credit up to $3,200. You can claim the credit for improvements made through 2032. For improvements installed in 2022 or earlier: Use previous versions of Form 5695.
Residential Alternative Energy Tax Deduction Idaho solar customers benefit from an income tax deduction for the first four years of their solar power installation. During the first year, Idahoans will receive a deduction worth 40% of the cost of their system; for the next three years, the deduction is worth 20%.

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