Idaho Alternative Energy Device Deduction

ALTERNATIVE ENERGY DEVICE DEDUCTION

If you install an alternative energy device in your Idaho residence, you can deduct a portion of the amount actually paid or accrued (billed but not paid).

In the year the device is placed in service, you can deduct 40% of the cost to construct, reconstruct, remodel, install or acquire the device but not more than $5,000.

In the next three years after installation, you can deduct 20% of these costs per year but not more than $5,000 in any year.

Qualifying devices include:

• A system using solar radiation, wind or geothermal resource primarily to provide heating or cooling or produce electrical power or any combination thereof

• A fluid-to-air heat pump operating on a fluid reservoir heated by solar radiation or geothermal resource but not an air-to-air heat pump unless it uses geothermal resources as part of the system

• A natural gas or propane heating unit that replaces a noncertified wood stove

• An Environmental Protection Agency (EPA)-certified wood stove or pellet stove meeting the most current industry and state standards that replaces a noncertified wood stove

A noncertified wood stove is a wood stove that doesn’t meet the most current EPA standards.

You must take the noncertified wood stove to a site authorized by the Division of Environmental Quality (DEQ) within 30 days from the date of purchase of the qualifying device. The DEQ will give you a receipt to verify they received and destroyed the noncertified wood stove. You must install the natural gas or propane heating unit, the EPA-certified wood stove or pellet stove the same tax year that you surrender the nonqualifying wood stove to the DEQ.