All of Hawaii · Tax credit
Renewable Energy Technologies Income Tax Credit (RETITC)
Run by Hawaii Department of Taxation, with the Hawaiʻi State Energy Office (certification from 2027)
Hawaiʻi state income tax credit for solar water heaters, solar PV and wind systems you own: 35% of cost for solar (up to $5,000 per PV system or $2,250 per solar water heater on a single-family home) and 20% for wind. A $40 million yearly statewide cap and new income limits apply under Act 24, and the credit ends after 2029.
Amounts
How much you get
A percentage of the system's actual cost (equipment, accessories and installation, minus any utility rebate), capped per system. The amount depends on which of these fits your install.
| What you install | You get |
|---|---|
| Single-family home (per system)Solar water heater | 35% |
| Single-family home (per system)Solar PV or other solar system | 35% |
| Multifamily building (per unit)Solar system | 35% |
| Single-family home (per system)Wind system | 20% |
| Multifamily building (per unit)Wind system | 20% |
Eligibility
Do I qualify?
You need to meet all 6 of these.
Your home is in Hawaii.
You must file a Hawaii individual or corporate income tax return. If the credit is more than your tax, the rest carries forward, or you can elect a refund (solar systems at 70% of the credit; full refund for retirement-income-only filers or Hawaii AGI of $20,000 or less, $40,000 or less married filing jointly).
You must be the economic owner of the system, and it must be installed and placed in service in Hawaii during the tax year. Lessees under a power purchase agreement can't claim it.
Starting with tax year 2027, the credit is limited to taxpayers with adjusted gross income of $175,000 or less filing individually, or $350,000 or less filing jointly. No income limit applies for 2026.
A solar water heater that was required by law on a new single-family home (HRS §196-6.5) doesn't qualify, and a PV system installed as a substitute for that required water heater has its credit reduced by the lesser of 35% of its cost or $2,250.
For systems placed in service from 2026 on, the Hawaiʻi State Energy Office certifies each credit: by March 1 after the year the system was placed in service, file a certified statement with HSEO; HSEO issues a certificate to attach to your return.
What to doFile the certified statement with HSEO by 5:00 p.m. on March 1 after the year your system was placed in service, then attach HSEO's certificate to your Hawaii return. Watch energy.hawaii.gov/retitc for the forms. SB 3125 CD2 (2026), enacted as Act 24
Equipment
What equipment counts
The program sets these minimums.
Total output capacity of 5 kilowatts per system on single-family residential property (0.360 kW per unit on multifamily), unless only one system is installed on the property that year or only one system falls short.
Applying
How to apply
You claim it on your tax return. Claim on your Hawaii return within 12 months after the close of the tax year the system was placed in service. From 2027, HSEO's certification application closes March 1 at 5:00 p.m. each year for the prior year's systems.
- Install and place the system in service.
The system counts as placed in service when the cost is incurred, all installation including electrical work is done, and the required inspection request has been received by the government agency.
- Apply to HSEO for certification by March 1.
Under Act 24, submit a certified statement to the Hawaiʻi State Energy Office by 5:00 p.m. Hawaii time on March 1 after the year the system was placed in service. HSEO notifies applicants of the certified credit by May 31. HSEO says forms and instructions will be posted on its RETITC page.
- For a 2026 system, document payments made before May 21, 2026.
To be exempt from the annual cap, keep proof that the system was completed before May 21, 2026, or that you paid or incurred a cost for financing, planning, design, permitting or installation before that date.
- File Form N-342 with your Hawaii tax return.
Use one Form N-342 per system, with Schedule CR when required, and attach the HSEO certificate. Subtract any utility rebate from the system cost.
- Claim within 12 months after the tax year ends.
You can't claim or amend the credit after that deadline.
Forms and instructionsInstructions for Form N-342 (Rev. 2025), Hawaii Department of Taxation · SB 3125 CD2 (2026), enacted as Act 24 · Tax Information Release No. 2026-02 (Hawaii DoTax, July 31, 2026) · Renewable Energy Technologies Income Tax Credit (HSEO) · State of Hawaiʻi and Federal Incentives (HSEO)
Questions about applying808-587-1530 or Tax.Rules.Office@hawaii.gov
Stacking
Use it with
Your address
Next steps
Check that it covers your address. Then, if you want, ask for a contractor quote.
Is it available at your address?
Before anything else
Your quote request is in If a contractor we work with serves your ZIP, they can contact you. We take one request per person; contact us to change it.
Get an email if this program changes
We'll write if its amount, status or deadline changes. Nothing else.
FAQ
Questions
How much does Renewable Energy Technologies Income Tax Credit (RETITC) pay?
Up to $5,000.
Is there an income limit?
Starting with tax year 2027, the credit is limited to taxpayers with adjusted gross income of $175,000 or less filing individually, or $350,000 or less filing jointly. No income limit applies for 2026.
Do renters qualify?
You must be the economic owner of the system, and it must be installed and placed in service in Hawaii during the tax year. Lessees under a power purchase agreement can't claim it.
Do I need approval before I buy?
For systems placed in service from 2026 on, the Hawaiʻi State Energy Office certifies each credit: by March 1 after the year the system was placed in service, file a certified statement with HSEO; HSEO issues a certificate to attach to your return. File the certified statement with HSEO by 5:00 p.m. on March 1 after the year your system was placed in service, then attach HSEO's certificate to your Hawaii return. Watch energy.hawaii.gov/retitc for the forms.
What’s the deadline?
Deadline: N/A
Is it still available?
Yes. It was open when we last checked, on October 27, 2026.
Can I claim the credit for leased solar or a power purchase agreement?
No. The credit goes to the system's economic owner; a lessee in a power purchase agreement can't claim it.
Do utility rebates reduce the credit?
Yes. Any utility rebate for the system is subtracted from its cost before the credit is figured.
What if several people paid for one system?
They share a single credit. Each owner claims a portion based on what they paid toward the system, subject to the cap.
Plain words
Words used on this page
References
Sources
This page is built from these official pages, run by the program itself.
- Instructions for Form N-342 (Rev. 2025), Hawaii Department of Taxation
- SB 3125 CD2 (2026), enacted as Act 24
- Tax Information Release No. 2026-02 (Hawaii DoTax, July 31, 2026)
- Renewable Energy Technologies Income Tax Credit (HSEO)
- State of Hawaiʻi and Federal Incentives (HSEO)
When one of these pages changes, we re-check this page against it.
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