Washington Rebates and Incentives

Federal Tax Credit

30% tax credit for systems brought on line in 2006 and 2007 with a cap of $2000 for homes and NO CAP for businesses.

Washington State

Sales Tax Exemption

Until 2011 by state law the sales tax is waived on purchases and installation of PV systems and solar hot water (added 2006).

Franklin County

Residential customers of Franklin PUD may apply for either a rebate or a loan for the purchase of a photovoltaic (PV) system or a solar water heating system. Rebates of $500/kW DC are available for PV systems. Solar water heating systems meeting certain guidelines are eligible for a $500 rebate.

Low Interest Loans, for Eligible Conservation Measures, are available in loan amounts from $400.00 to $7000.00 for a single-family residence and up to $10,000 for a multi-family building. Interest rates can be as low as 3% Annual Percentage Rate (APR).

City of Richland

Electrically heated City of Richland customers who wish to install solar water heaters are eligible for low interest loans of up to $5000.

Commercial Installations

The Commercial Federal Tax Credit and Modified Accelerated Cost-Recovery System (MACRS):

Solar hot water systems are 5-year properties for the purpose of depreciation. Under a special rule in the Internal Revenue Code , the depreciation basis for solar hot water systems is only reduced by half of the federal tax credit.

A business that installs a solar thermal or PV system (or both) gets a tax credit of 30% and can also depreciate 85% of the cost of its system(s) over only 5 years. What this means to you is the "pay-back" period for a commercially installed solar hot water system can be significantly shorter than a residential, and has additional tax benefits. Give us a call for more details about how this can work for your business. For more information, review IRS Publication 946.