Sales Tax Incentives

Sales tax incentives typically provide an exemption from, or refund of, the state sales tax (or sales and use tax) for the purchase of a renewable energy system, an energy-efficient appliance, or other energy efficiency measures. Some types of equipment purchases may be eligible for only a partial abatement of the sales tax. Several states have established an annual ?sales tax holiday? for energy efficiency measures by annually allowing a temporary exemption ? usually for one or two days ? from the state sales tax.