New Hampshire Solar Tax Credit

If you want to go solar in New Hampshire, don’t rush to buy solar panels blindly. Take advantage of the greatest incentive available to solar owners – Investment Tax Credit. This program makes going solar 30% less painful for your budget. To learn more, read our article on how to claim Solar Tax Credit in New Hampshire.

What is the Solar Tax Credit?

The Solar Investment Tax Credit (ITC) empowers both businesses and homeowners to claim a tax credit equivalent to 30% of the total cost of a solar panel system. Unlike rebates, the ITC directly reduces your income tax liability.

The Solar Tax Credit is accessible to those who install solar panels before December 31, 2034. It gradually reduces to 26% in 2033 and further to 22% at the onset of 2034.

How does the New Hampshire Solar Tax Credit work in practice?

Imagine installing a $20,000 solar panel system — the Solar Tax Credit allows you to deduct $6,000 from your income taxes, bringing the net cost down to $14,000. Moreover, any unused credit can be carried over to subsequent years, ensuring you capture the full 30% incentive.

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To qualify for the ITC, ownership of the solar energy system is crucial — leased systems do not qualify. Installation must occur within the United States, and the solar PV system should be either new or used for the first time. Note that PV installations on boats or RVs can be claimed as a second home.

How do I get a solar tax credit in New Hampshire?

The process begins after your solar system is installed. After installing the solar system, keep meticulous records of related expenses, such as invoices and receipts. While not initially required, these documents may be essential in case of an audit. 

Homeowners can claim the credit by completing IRS Form 5695 and attaching it to their federal income tax return. Ensure that residential energy credit information is added to Schedule 3 (Form 1040) and filed by the relevant deadline.

Need help? Follow our guide!

We cover filling out the forms for claiming ITC step by step

Step-by-step guide

Benefits of the New Hampshire Solar Tax Credit

This credit covers not only solar panels but also all associated equipment, shipping, and labor expenses. There's no cap on how much you can claim back.

Beyond the federal solar tax credit, New Hampshire offers its own state-level incentives and rebates for solar installations. These programs further alleviate upfront costs. Dive into our guide on New Hampshire solar incentives.

Julia Zaraeva

Author

Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.

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