Solar incentives vary widely across the United States, particularly when it comes to sales tax and property tax exemptions. Some states exempt solar equipment from sales tax at purchase, while others protect homeowners from property tax increases when solar raises the value of their home.
Below is a state-by-state breakdown for 2026, including whether solar equipment qualifies for property or sales tax exemptions and where to find the appropriate forms when required.
Alabama
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Property Tax Exempt: No
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Alabama currently does not provide a statewide solar sales tax exemption. Solar equipment purchases are typically subject to the standard state sales tax rate unless a project qualifies under a commercial incentive program or local utility initiative.
Alaska
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Property Tax Exempt: No
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Sales Tax Exempt: No statewide tax, but some local
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Sales Tax Form: N/A
Alaska has no statewide sales tax, meaning solar equipment purchases typically avoid state sales tax automatically. However, some municipalities may charge local sales tax depending on location.
Arizona
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://azdor.gov/forms/tpt-forms/transaction-privilege-tax-exemption-certificate
Arizona exempts solar energy devices from both sales tax and property tax for residential and commercial systems. The sales tax exemption is automatically applied at the point of sale — no paperwork is required from the buyer.
Arkansas
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Property Tax Exempt: No
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Arkansas does not currently provide a statewide sales tax exemption for solar equipment. Purchases are generally taxed at the normal state sales tax rate unless a commercial renewable energy incentive program applies.
California
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
California protects homeowners from increased property taxes when solar increases property value through the Active Solar Energy System Exclusion. However, solar equipment purchases remain subject to normal state sales tax.
California's property tax exemption for solar installations expired on January 2, 2025. Solar equipment is not currently exempt from state sales and use tax.
Colorado
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://tax.colorado.gov/sites/tax/files/documents/DR_1366_2023.pdf
Colorado exempts many renewable energy components from state sales tax. Installers and purchasers typically provide the Renewable Energy Sales Tax Exemption Certificate to suppliers to document the exemption.
Connecticut
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://portal.ct.gov/-/media/DRS/Forms/2019/OS/OS114pdf.pdf
Connecticut exempts solar energy systems from both property tax increases and sales tax. Solar equipment purchases typically qualify automatically when used in qualifying residential or commercial renewable energy systems.
Delaware
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Property Tax Exempt: No
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Sales Tax Exempt: No statewide sales tax
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Sales Tax Form: N/A
Delaware has no state sales tax, so solar equipment purchases are generally free from state sales tax automatically. Property tax treatment varies by local jurisdiction.
Florida
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://floridarevenue.com/forms_library/current/dr15.pdf
Florida provides both sales tax and property tax relief for solar installations. Solar equipment used to produce renewable energy is exempt from state sales tax when properly documented at purchase.
Georgia
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Property Tax Exempt: No
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Georgia does not currently provide a statewide solar sales tax exemption. Equipment purchases are generally taxed unless part of a large commercial project qualifying for separate economic development incentives.
Hawaii
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Property Tax Exempt: Yes (county dependent)
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Hawaii offers significant solar tax credits but does not provide a statewide sales tax exemption. Property tax treatment varies by county, with several counties offering favorable treatment for solar installations.
Idaho
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Idaho exempts renewable energy equipment from property tax increases in many cases. However, solar equipment purchases remain subject to the state sales tax.
Illinois
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Illinois prevents solar energy systems from increasing a property's assessed value for taxation. Solar equipment purchases, however, are generally subject to normal sales tax.
Indiana
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Indiana provides a property tax deduction for solar energy systems that increase home value. Solar equipment purchases remain subject to the state's sales tax.
Iowa
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://tax.iowa.gov/forms/solar-energy-system-exemption
Iowa exempts solar energy equipment from both property tax increases and sales tax when used in qualifying renewable energy systems.
Kansas
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Kansas offers a property tax exemption for renewable energy equipment for a limited time period. Solar equipment purchases generally remain subject to sales tax.
Louisiana
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Property Tax Exempt: No
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Louisiana does not offer a statewide sales tax exemption for solar equipment purchases. Some local incentives may apply depending on parish policies.
Maine
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Property Tax Exempt: Yes (municipal option)
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Maine allows municipalities to offer property tax exemptions for renewable energy systems. Solar purchases remain subject to the state sales tax rate.
Maryland
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://www.marylandtaxes.gov/forms/current_forms/st_exemption.pdf
Maryland exempts solar equipment from sales tax statewide and also prevents property tax increases resulting from solar installations.
Massachusetts
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://www.mass.gov/doc/form-st-12/download
Massachusetts provides both sales tax and property tax exemptions for qualifying solar energy systems, making it one of the more solar-friendly tax environments.
Michigan
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Michigan exempts solar systems from property tax increases through its renewable energy property exemption program. Sales tax still applies to solar equipment purchases.
Minnesota
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://www.revenue.state.mn.us/sites/default/files/2022-12/st3.pdf
Minnesota exempts solar energy equipment from both property and sales tax when used for renewable energy generation.
Mississippi
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Property Tax Exempt: No
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Mississippi currently does not provide a statewide solar sales tax exemption. Solar equipment purchases are subject to normal sales tax.
Missouri
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Missouri allows property tax exemptions for certain renewable energy equipment. However, solar purchases typically remain subject to sales tax.
Montana
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Property Tax Exempt: Yes
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Sales Tax Exempt: No statewide sales tax
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Sales Tax Form: N/A
Montana has no statewide sales tax, and renewable energy systems often qualify for favorable property tax treatment under renewable energy policies.
Nebraska
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Property Tax Exempt: No
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Nebraska does not currently provide a statewide solar sales tax exemption for residential solar equipment purchases.
Nevada
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Property Tax Exempt: Partial programs
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Nevada offers partial renewable energy tax abatements for certain projects but does not offer a broad statewide sales tax exemption for residential solar purchases.
New Hampshire
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Property Tax Exempt: Local option
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Sales Tax Exempt: No statewide sales tax
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Sales Tax Form: N/A
New Hampshire has no statewide sales tax. Some municipalities provide property tax exemptions for solar energy systems.
New Jersey
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://www.state.nj.us/treasury/taxation/pdf/other_forms/sales/st4.pdf
New Jersey exempts solar equipment from sales tax and prevents property tax increases due to solar installations.
New Mexico
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://www.tax.newmexico.gov/forms-publications/
New Mexico provides exemptions through deductions within its gross receipts tax system, effectively eliminating sales tax on many solar equipment purchases.
New York
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Property Tax Exempt: Yes (local opt-out allowed)
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Sales Tax Exempt: Yes
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Sales Tax Form: https://www.tax.ny.gov/pdf/current_forms/st/st121.pdf
New York exempts solar equipment from sales tax statewide. Property tax exemptions apply unless a municipality opts out of the program.
North Carolina
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
North Carolina exempts a large portion of solar energy system value from property taxation but still applies standard sales tax to solar equipment purchases.
North Dakota
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
North Dakota offers property tax exemptions for renewable energy systems for a limited period. Solar purchases remain subject to state sales tax.
Ohio
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Property Tax Exempt: No
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Ohio does not currently offer a statewide sales tax exemption for residential solar equipment purchases.
Oklahoma
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Property Tax Exempt: No
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Oklahoma does not provide a statewide sales tax exemption for solar equipment purchases.
Oregon
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Property Tax Exempt: Yes
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Sales Tax Exempt: No statewide sales tax
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Sales Tax Form: N/A
Oregon has no statewide sales tax, meaning solar equipment purchases avoid state sales tax automatically. Some property tax incentives apply to renewable energy systems.
Pennsylvania
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://www.revenue.pa.gov/FormsandPublications/FormsforBusinesses/SUT/Documents/rev-1220.pdf
Pennsylvania exempts solar equipment from sales tax when used for renewable energy generation and prevents property tax increases resulting from solar installations.
Rhode Island
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://tax.ri.gov/forms/excise-tax-forms
Rhode Island exempts renewable energy systems from sales tax and allows property tax exemptions depending on municipal policies.
South Carolina
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
South Carolina exempts solar systems from property tax increases but generally still applies sales tax to solar equipment purchases.
South Dakota
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
South Dakota provides property tax exemptions for renewable energy systems for a limited period but does not offer a statewide solar sales tax exemption.
Tennessee
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Tennessee offers property tax relief for certain renewable energy systems but does not provide a general sales tax exemption for solar equipment.
Texas
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Texas protects homeowners from property tax increases resulting from solar installations. However, solar equipment purchases are generally subject to state sales tax.
Utah
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Property Tax Exempt: Partial
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Utah provides partial property tax exemptions for renewable energy systems depending on system type and ownership structure.
Vermont
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://tax.vermont.gov/forms-and-publications
Vermont exempts solar equipment from sales tax when used for renewable energy generation and provides favorable property tax treatment for qualifying systems.
Virginia
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Property Tax Exempt: Local option
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Virginia allows local jurisdictions to adopt property tax exemptions for solar installations. However, solar equipment purchases generally remain subject to state sales tax.
Washington
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Property Tax Exempt: No
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Sales Tax Exempt: Partial programs
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Sales Tax Form: https://dor.wa.gov/forms-publications/forms-subject/tax-incentives
Washington offers sales tax exemptions for certain renewable energy systems under specific program rules, often tied to system size or application type.
West Virginia
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Property Tax Exempt: Yes
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Sales Tax Exempt: No
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Sales Tax Form: N/A
West Virginia exempts certain renewable energy systems from property tax increases but does not provide a statewide solar sales tax exemption.
Wisconsin
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Property Tax Exempt: Yes
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Sales Tax Exempt: Yes
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Sales Tax Form: https://www.revenue.wi.gov/Forms/sales/s211.pdf
Wisconsin exempts solar energy systems from both sales tax and property tax when used for renewable energy generation.
Wyoming
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Property Tax Exempt: No
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Sales Tax Exempt: No
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Sales Tax Form: N/A
Wyoming does not currently provide a statewide solar sales tax exemption for equipment purchases.
Need Help Navigating Incentives? Reach Out to US Solar Supplier
Indiana's solar incentive landscape has evolved considerably in 2026, and making sense of all the programs, utility-specific rules, and changing federal policy can be overwhelming.
👉 Contact US Solar Supplier for personalized guidance on solar equipment, design services, and homeowner-focused solar planning in Indiana.
