Renewable Energy/Solar Sales Tax Exemption

July 29, 2005


Nevada law exempts from local sales and use taxes the sale, storage and consumption of any products or systems designed or adapted to use renewable energy to generate electricity and all of its integral components. Included in the exemption are all sources of energy that occur naturally or are regenerated naturally, including biomass (agricultural crops, wastes and residues, wood, wood wastes, and residues, animal wastes, municipal waste and aquatic plants), fuel cells, geothermal energy, solar energy, hydropower and wind. In 2003, SB 489 extended this exemption to solar-thermal energy systems and solar lighting systems and integral parts that reduce the consumption of electricity or any fossil fuel. The state sales tax rate for all products exempt from local sales and use tax is 2% in all counties. In 2005, AB3 further expanded the exemption to include all products or materials used in the construction of a building if the building is certified or will meet the equivalent of LEED Silver in accordance with the Leadership in Energy and Environmental Design (LEED) Green Building Rating System. As of August 2005, the regulations for this addition were under development. Consult the Nevada Department of Taxation for more details. The sales tax exemption is currently set to expire December 31, 2005, but may be extended.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Nevada
Incentive Type: Sales Tax Incentive
Web Site:
Administrator: NV Department of Taxation
Start Date: 1/1/02
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Geothermal Electric
  • Solar Thermal Electric
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Hydroelectric
  • Municipal Solid Waste
  • Fuel Cells using Non-Renewable Fuels
  • Landfill Gas
  • Comprehensive Measures/Whole Building
  • Wind (Small)
  • Anaerobic Digestion
  • Fuel Cells using Renewable Fuels
Incentive Amount: 100% exemption from local sales taxes; 2% state sales tax still applies


Name: NRS 374.307
Effective Date: 1/1/02
Expiration Date: 7/1/05
Name: Assembly Bill 3 (2005)
Date Enacted: June 2005
Effective Date: 7/1/05


Name: Information Specialist - Dept. of Taxation
Organization: NV Department of Taxation
Address: 1550 E. College Parkway, Suite 115
Carson City NV 89706
Phone: (775) 684-2000

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.