Unlock Energy Savings: State And Federal Tax Incentives Every Hawaii Business Owner Should Know

With energy costs on the rise and sustainability taking center stage, there's never been a better time for Hawai‘i businesses to invest in energy-efficient and renewable technologies. But did you know that upgrading your HVAC system, installing solar panels, or simply improving your building’s energy performance could also save you thousands in taxes?

Here’s a quick guide to the top tax incentives available in 2025—designed to help you reduce costs, increase efficiency, and future-proof your operations.

Hawai‘i Renewable Energy Technologies Income Tax Credit (RETITC)

Thinking about going solar? Hawai‘i’s RETITC makes it easier to say yes.

🟢 Get up to 35% of your renewable energy system’s cost back in state tax credits

🏢 Applies to solar PV, solar thermal, and wind systems

💸 Commercial installations can qualify for up to $500,000 in credits per system

🗓️ Can carry over unused credits for up to five years

✅ Why it matters: Ideal for Hawaii businesses with high energy usage—especially those investing in rooftop solar or solar water heating systems and want to reduce their state income tax burden.

Property Tax Incentives (County-Based)

Installing renewable energy tech doesn’t just lower your energy bill—it can also lower your property tax liability.

🏗️ Honolulu, Maui, and Hawai‘i Counties offer exemptions for the added value of renewable energy systems

⚙️ Applies to solar, wind, and sometimes battery storage or EV chargers

📋 Businesses don’t get taxed on the increased property value from installing these improvements

✅ Why it matters: Your investment increases your property value—but not your property tax

Federal Business Energy Investment Tax Credit (ITC)

A powerful incentive at the federal level, the ITC gives you a 30% tax credit on major renewable energy projects.

☀️ Covers systems like solar PV, wind, geothermal, fuel cells, and CHP (combined heat and power)

🎯 Bonus credits (of up to 50% total credit) available for projects in:

• Low-income or energy communities

• Using U.S.-made components

• Paying prevailing wages and apprentices

✅ Why it matters: If your business is planning to go green in a big way, this credit helps make it financially viable. Moreover, it is best for businesses of all sizes nationwide pursuing larger or multi-location projects and looking to reduce their federal tax bill.

Section 179D – Commercial Buildings Energy-Efficiency Deduction

This often-overlooked federal deduction rewards businesses for making their buildings more efficient.

💰 Deduct up to $5.00 per square foot for qualified improvements to:

• HVAC systems

• Interior lighting

• Building envelope (insulation, roofing, windows)

🏗️ Applies to new construction and retrofits

📋 Requires third-party certification that your building meets specific energy benchmarks

✅ Why it matters: Large commercial spaces can see substantial tax savings, especially when upgrading outdated systems.

Ready to Take Advantage?

If you're a Hawai‘i business owner planning upgrades in 2025, these incentives are your opportunity to invest in the future—with serious returns.

👉 Whether you're replacing an aging AC system, adding solar panels, or improving insulation—don’t leave money on the table.

📲 Call Alltemp today for a free consultation and energy audit. Let’s build a greener, more cost-effective future for your business — together.

🌿 Lower costs. Greener business. Better future.