Nebraska does not have state tax incentives like other states. However, if you live in Nebraska, you can take advantage of other state and national incentives, such as federal solar investment tax credits, net metering and fixed rate loans. The Nebraska state government has approved loan programs with major state lenders to provide low-interest, fixed-rate loans to solar installers in Nebraska.
Federal Solar Investment Tax Credit
As part of the Inflation Act of 2022, the federal government extended the solar investment tax credit, making solar projects less expensive. The tax credit allows homeowners to receive a tax credit of up to 30% of the cost of their solar project. Given that the average solar project costs about $16,000 , the tax credit could save you $4,800 .
It's important to know a few more things about the solar tax credit: First, it doesn't last forever. The loan will start issuing in 2033, it will be reduced to 26%. It then drops to 22% the following year before the tax year ends entirely in 2035.
This is also a temporary credit, but if the taxes you owe for that year are less than the credit, they will be carried over to the next year.
Internet scale
Nebraska has a net worth of people with solar systems. Homeowners who generate excess energy with solar panels can get a credit on their bill. The credit will be applied to the next billing period. Net metering is available in Nebraska for solar systems up to 25 kW. Please note that in this case, electricity prices are set by utility companies, so the amount of credit received may vary.
Dollar Loan Nebraska Energy Savings
The Nebraska Energy Savings and Dollar Loan Program offers permanent loans through lenders to homeowners in the state. Loans can last up to 15 years with interest rates of 5%, 3.5% or less. The maximum loan amount ranges from $125,000 to $500,000 depending on the type of home with a solar installation.
Funding of PACE
Nebraska Property Assessment for Clean Energy (PACE) funding allows Nebraska municipalities to begin financing renewable energy system programs. The program can lower loan down payments, keep loan interest rates below market averages and make loan payments part of property taxes.
- Additional environmental stimulation
In some areas of Nebraska, you may be eligible for additional local incentives. For example, the Omaha Public Power District offers Rebella $2,000 when the right solar system is installed through a Solar Generation business partner/customer.
Updates and guidance on energy tax credits in 2024
