30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·
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State Solar Tax Credits: A Complete 2026 Map

A state solar tax credit is an income tax credit at the state level — separate from, and stacked on top of, the federal 30% Residential Clean Energy Credit. 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 Combines With Federal ITC

State income tax credits stack cleanly with the federal credit because they apply to a different tax authority. They typically do not reduce the federal credit basis. Property tax and sales tax exemptions also stack independently.

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.