The Hawaii Energy Tax Credit allows owners of single-family homes to claim a State income tax credit up to 35% of the actual cost of the system or $5,000, whichever is less.
Each ‘System’ is defined as 5 kilowatts (kW); therefore, a 10kW would be eligible for up to $10,000 in Hawaii State Tax Credits (see example calculation below). The system must be fully installed and “operational” by 12/31 of the year you wish to file tax credits for.
Example:
A 7.5 kW system costs $40,000, the first 5kW ‘system’ would receive a $5,000 state tax credit. The remaining 2.5kW ‘system’ (1/3 of the total system size) would receive an additional 35% credit pro-rated ($40,000 x 33% x 35% = $4,620).
The Hawaii Tax Credits on a 7.5kW system would be $5,000 + $4,620 = $9,620