|Incentive Type:||Personal Deduction|
|Eligible Efficiency Technologies:||Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps|
|Incentive Amount:||40% in the first year; 20% per year for next three years|
This statute 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. Taxpayers can apply this 40% deduction in the year in which the system is installed and can also deduct 20% of the cost each year for three years thereafter. The maximum deduction in any one year is $5,000. The total maximum deduction is $20,000.
Eligible biomass energy devices include a pellet stove or EPA-certified wood stove if: