Tax Deduction for Interest on Loans for Energy Efficiency (California)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Tax Deduction for Interest on Loans for Energy Efficiency|
|Incentive Type||Personal Deduction|
|Eligible Technologies||Lighting, Chillers, Furnaces, Boilers, Heat pumps, Central Air conditioners, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Custom/Others pending approval, Solar Water Heat, Solar Space Heat, Photovoltaics, Daylighting, Advanced metering|
|Energy Category||Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs|
|Amount||100% of interest from loan|
|Program Administrator||California Franchise Tax Board|
|Date added to DSIRE||2001-12-06|
|Last DSIRE Review||2007-08-03|
This personal tax deduction allows taxpayers to deduct the interest paid on loans used to purchase energy efficient products or equipment for a residence in California. The deduction is for loans from a publicly-owned utility company for the purchase of energy-efficient heating, ventilation, air-conditioning, lighting, solar, advanced metering of energy usage, windows, insulation, zone heating products, and weatherization systems. Customers of publicly-owned utility companies that do not offer customer financing may be able to deduct the interest from a home equity or home improvement loan used to purchase energy efficient products and equipment.
Publicly-owned utility companies must issue a federal income tax Form 1098, or similar form, to notify their customers of their eligibility for this deduction. Furthermore, this deduction may not be taken if a tax credit is taken for the purchase of the energy efficient equipment. Contact the IRS for more information.
Authorities (Please contact the if there are any file problems.)
|Authority 1:||CA Revenue and Taxation Code § 17208.1|
|Contact Name||Tax Specialist - FTB|
|Department||California Franchise Tax Board|
|Address||PO Box 942840|
|Phone 2||(916) 845-6500|
|Contact Name||Information Specialist - IRS|
|Department||Internal Revenue Service|
|Address||1111 Constitution Avenue, N.W.|
|Place||Washington, District of Columbia|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.