::STATE_TAX_CREDIT

State Solar Tax Credits: A Complete 2026 Map

A state solar tax credit is an income tax credit at the state level. It is not the federal residential credit, which does not apply to a system installed in 2026. State credits range from 10% to 35% of installed cost, almost always with a dollar cap.

States With State Tax Credit

8 states currently offer state tax credit. Click into any state for the specific terms.

How to Claim State Tax Credit

After installing a qualifying system, you claim the credit on your state income tax return for the install year. If your state tax liability is too low to absorb the full credit, most states allow carry-forward for 5 to 10 years until used.

How State Tax Credit Relates to the Ended Federal Credit

State income tax credits are claimed on the state return. They do not revive the federal residential credit, which ended for expenditures after Dec 31, 2025. Property tax and sales tax exemptions are separate rules.

Frequently Asked Questions

Which states offer the largest solar tax credits?

Hawaii (35%, $5,000 cap), New York (25%, $5,000), Arizona (25%, $1,000), South Carolina (25%, $3,500), and Massachusetts (15%, $1,000) lead the field for residential systems in 2026.

Is the state credit refundable?

Most state solar credits are non-refundable, meaning they only reduce tax owed and cannot generate a refund check. Carry-forward provisions let unused credit apply in future years.

Can I claim a state credit if I file jointly with a non-resident spouse?

Yes, in most states. The credit attaches to the filing taxpayer's state return. Specific apportionment rules vary; consult your state revenue department for joint-filer specifics.

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