Hawaii Extends State Solar Tax Credit Through 2025

In a significant win for Hawaii homeowners considering solar, Governor Josh Green signed House Bill 1234 into law, extending the state's residential solar tax credit through 2025.

What This Means for Homeowners

The 35% state tax credit, which was set to expire at the end of 2024, will now remain available for solar installations completed through December 31, 2025. This credit is capped at $5,000 per system.

Combined Savings (Systems Installed by Dec 31, 2025)

For homeowner-owned systems installed before the federal deadline, combining the 30% federal Investment Tax Credit (ITC) with the state credit can still offset up to 65% of installation costs. Note: The federal 30% credit for homeowner-owned systems ends December 31, 2025 due to the One Big Beautiful Bill. After that date, only leased/PPA systems retain the federal credit through 2027.

Industry Response

"This extension provides the stability our industry needs to continue serving Hawaii families," said the Hawaii Solar Energy Association. "It gives homeowners confidence that the incentives will be there when they're ready to make the switch."

How to Claim

The state tax credit is claimed when you file your Hawaii state taxes using Form N-342. You'll need documentation of your system cost and proof of installation completion.