Income Tax Deduction for Energy Efficiency Upgrades

Last updated: February 13, 2020

Program Overview

Implementing Sector:State
Category:Financial Incentive
State:Idaho
Incentive Type:Personal Tax Deduction
Administrator:Idaho Tax Commission
Eligible Efficiency Technologies:Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows
Incentive Amount:100% of the cost of material and labor

Authorities

Name:Idaho Code § 63-3022B

Summary

Income Tax Deduction for Energy Efficiency Upgrades

Idaho residents with homes built or under construction before 2002, or who had a building permit issued before January 1, 2002, qualify for an income tax deduction for 100% of the cost of installing new insulation or other approved energy efficiency improvements in an existing residence. Any insulation added must be in addition to, not a replacement of, existing insulation. Other energy efficiency measures that may be deducted are windows that are more energy-efficient than existing windows, storm windows, weather stripping and caulking, and duct sealing and insulation.  Efficiency measures must meet or exceed the criteria for the component in the version of Idaho's energy code in effect in the year the improvement was made. The amount charged for labor is also deductible. Legislation enacted in 2013 (H.B. 4) stipulates that the home must be the primary residence and located within the State of Idaho to qualify for the deduction. 

Customers should claim the deduction on forms from the Idaho State Tax Commission; contact the Idaho State Tax Commission for the most recent form.

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