Solar energy is one efficient energy source which is widely known to produce a “solar thermal hot water” system for heating water. It produces electricity through a “concentrated solar power or CSP” system, or through photovoltaic electricity.
The Hawaii Energy Tax Credits give benefits to single or corporate entities. These are income tax credits of 20% to 35%, for the cost of installation of wind and solar thermal or photovoltaic systems, respectively.
This original enactment in 1990 was revised and extended up to 2007. The legislation even expanded to include a number of modifications and revision, until finally, a government decree now legislates to cut the personal tax credit for those who install solar water heating in newly constructed homes after December 31, 2009.
An estimation of 80,000 households and other facilities in Hawaii utilize ”solar thermal” systems, particularly the solar water heater. This system proves to be cost-effective anywhere in the state of Hawaii. Therefore, the state provides the following incentives to those who support this system:
- For a single-family residential property, maximum credits allowed are $2,250
- For residential homes that house multiple families, a credit of $350 for every unit is available.
- Commercial properties are eligibale for up to $250,000 of credit.
For utilization of photovoltaic systems (the conversion of the sun’s energy into electricity using solar cells) single family is eligible for a credit of up to $5,000. Multi-family residential properties can avail themselves of $350 credit per unit, and commercial properties are eligible for up to $500,000 in tax credits.
For those who use wind-powered systems, a 20% credit of up to $1,500 is allowed for single family residences. Another 20% is available for multi-family residences (up to $200 for each family), and a 20%, up to $500,000, is available for commercial properties.
It is important to note that, if a these tax credits exceed an individual’s tax liabilities in one year, the credit may be applied to later years until exhausted. Installation and equipment requirements mandate that systems must be new, and must comply to the safety and performance standards set by the program.
All the above-mentioned incentives are very attractive financial packages that enable single or commercial property owners to make use of low cost energy systems to cut a significant value in their expenses and even contribute in safer and cleaner energy consumption.
Source: http://www.hawaii.gov/
Disclaimer: This article does not constitute a source of an official legal or financial advice. While we attempt to represent all data as accurately as possible, we advise you to refer to official government websites, for the most accurate and up-to-date information.
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