Oregon State Tax Credits

Oregon state offers tax credits for many renewable energy installations. Up to $1500 on solar, wind, or micro-hydro installations can make your RE project more affordable.

The State of Oregon provides income tax credits for homeowners, renters, businesses, or industries that install renewable energy and energy conserving equipment on their homes and businesses. 

Tax credits not just tax deductions. Tax credits subtract one hundred per cent from the taxes you owe. In most cases, customers receive them as additional refunds at the end of the tax year. All solar contractors certified by the Oregon Department of Energy are authorized to complete the appropriate tax paperwork for their clients, saving them time and money. 

Residentially, there are four categories that qualify for up to a $1500 tax credit.

Solar electric PV systems qualify for up to a $6,000 tax credit provided at $1500/yr for up to four years. The PV credit is evaluated at $3/kWDC.

1) Solar water heating
2) Solar electric (PV) (qualifies for up to $6000)
3) Passive solar design or active solar space heating or geothermal heating and cooling**
4) Solar pool heating
5) Energy efficient appliances**

Commercially, the Business Energy Tax Credit is 50% of the eligible project costs. The credit is filed over 5 years: 10% each year. For projects with eligible costs of $20,000 or less, the tax credit may be taken in one year. For commercial solar energy projects, there is an additional 30% Federal Tax Credit that can be taken in the first year.

Each category has its own rules as to what products and services will qualify and how much the credits are for qualifying equipment. Consult your local solar contractor for the latest updated information on the tax credit programs, or visit the Tax Credit pages at the Oregon Department of Energy website. For residential credits click here, business credits click here.

** The credits for these applications are typically less than the maximum amount ($1500).

Please see the ODOE website for more information.