Arizona Solar Credit

Thanks to the solar equipment sales tax exemption you are free from the burden of any arizona solar tax.

Arizona solar credit.

Arizona s energy systems tax credit. An income tax credit is also available at the state level for homeowners in arizona. Known as the residential solar and wind energy systems tax credit this incentive gives you a tax credit of 25 percent for your new solar energy system. This tax credit is capped at 1 000 but the good news is that it can be combined with the 30 federal solar tax credit.

The residential itc drops to 22 in 2021 and ends in 2022. That is a nice bonus to add to the 26 federal solar tax credit. Equipment and property tax exemptions. Credit for solar energy devices.

Residential arizona solar tax credit. Approval and certification from the arizona department of revenue is required prior to claiming the tax credit based on applications submitted between january 2 and january 31 of the following the calendar year of production. Therefore you aren t required to pay any sales tax on the purchase of your solar system. Every resident in arizona who installs solar panels gets a state tax credit of 25 of the total system cost up to 1 000 to be used toward state income taxes.

A nonrefundable individual tax credit for an individual who installs a solar energy device in taxpayer s residence located in arizona. Arizona solar tax credit. You can also carry forward any excess credit you have for up to five years. The residential arizona solar tax credit reimburses you 25 percent of the cost of your solar panels up to 1 000 right off of your personal income tax in the year you install the system.

No more than 20 million can be approved by the department in a calendar year. Buy and install a new home solar system in arizona in 2020 with or without a home battery and you could qualify for the 26 federal tax credit.