Tax Credits reduce income tax liability on a dollar basis and are claimed on your state and federal income tax returns. The tax credits for solar are “non-refundable,” meaning they can reduce your tax liability to zero, but not below. Systems today must be OG-300 certified to receive an Oregon Tax Credit.
Oregon Residential Energy Tax Credit for solar water heating (Oregon Department of Energy): $2.00 per rated kWh savings for the first year, or 50% of the cost of the system, not to exceed $6,000. The maximum credit claimed per year may not exceed $1,500.
Federal income tax credit for solar water heating: 30 percent of net installed cost (net installed cost = total installed cost – Energy Trust cash incentive).