Property Tax Exemption for Wind, Solar, and Geothermal Energy Producers

October 31, 2023


In 2007, Idaho enacted a bill that restructured the method of taxation for producers of wind energy from a property tax to a tax on production. The aim of this restructuring was to ease the burden on commercial wind farms in the early years of operation. In 2008, Idaho enacted further legislation to include geothermal energy producers under this method of taxation, and solar energy producers were included under legislation (H.B. 534) enacted in 2016. 

Under these policies, commercial wind, solar, and geothermal energy producers, excluding those regulated by the Idaho Public Utilities Commission, are exempt from paying taxes on real estate, fixtures or property related to their renewable energy systems. In lieu of property taxes, however, wind and geothermal energy producers must instead pay a tax of three percent (3%) of gross energy earnings. Solar energy producers must pay a tax of three and a half percent (3.5%) of gross energy earnings.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Idaho
Incentive Type: Property Tax Incentive
Web Site:
Administrator: Idaho State Tax Commission
Start Date: 1/1/2008
Eligible Renewable/Other Technologies:
  • Geothermal Electric
  • Solar Thermal Electric
  • Solar Photovoltaics
  • Wind (All)
Incentive Amount: 100% of property taxes, replaced with 3% tax on production for wind and geothermal or 3.5% for solar energy


Name: Idaho Code § 63-3502B
Effective Date: 1/1/2008
Name: Idaho Code § 63-602JJ


Name: Public Information
Organization: Idaho Tax Commission
Address: 11321 W. Chinden Blvd.
Boise ID 83714
Phone: (208) 334-7660

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.