There are federal income tax credits for the following items:

• Solar hot water systems, photovoltaic systems and wind systems.  For businesses, there are tax credits and accelerated depreciation and for individuals, there are tax credits.
• Home improvement items including windows and doors, roofing, insulations, HVAC, and water heaters.
• Building an energy efficient home either for yourself or as a business.

Special notice for businesses about solar energy

Just the federal tax credits and the accelerated tax depreciation for businesses can reduce the capital cost of a PV system by up to 60%! To learn more, see the website of Solar Energy Industries Association. Add the Washington State production incentives with in-state components, your payback can potentially be reduced to 7 years.  A 10.25% rate of return and the system continues to make money for you for a long as the sun comes up.

There are also tax deductions for owners or designers of commercial buildings that saves on energy. 

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State Incentives

Washington state incentives for renewable energy system includes sales tax exemption and production incentive. Sales tax exemption expires on June 30, 2009 while the renewable energy production incentive has a susset date of June 30, 2014. In addition, there is a net metering rule requiring utility companies to buy back electricity generated by on-grid renewable systems size 100 kilowatts and under.