A variety of federal and state incentives may be available to help fund a solar energy system at your home or business. Here is an overview of some of the incentives that may be available to you. (Please consult your tax advisor to confirm how these programs will apply to your specific financial scenario.)

Federal:
30% of the full installed cost of a solar energy system can be claimed for a federal tax credit. This program is in place until 2016. The credit can be applied to the alternative minimum tax, and has a 5-year carry over allowance of 30% if your tax credit is more than you can use in one year.

For a business, the Modified Accelerated Cost Recovery System (MACRS) is the current tax depreciation system in the United States. Under this system, the capitalized cost (basis) of tangible property is recovered over a specified life by annual deductions for depreciation. The details on this are specified in the Internal Revenue Code. In 2011 MACRS allows 100% depreciation of the solar equipment in the first year. Please check with your tax advisor for additional details.

State:
Solar equipment is exempt from sales tax in the State of Minnesota.

In the State of Minnesota your property tax basis cannot be increased because of a solar energy system.

Some utilities offer a solar rebate incentive for their customers:
(click here for a database of incentives across the entire US)