Residential Solar and Wind Energy Systems Tax Credit

Last updated: May 24, 2019

Program Overview

Implementing Sector:State
Category:Financial Incentive
State:Arizona
Incentive Type:Personal Tax Credit
Web Site:https://azdor.gov/forms/tax-credits-forms/credit-solar-energy-credit
Administrator:AZ Department of Revenue
Start Date:01/01/1995
Eligible Renewable/Other Technologies:Solar - Passive, Solar Water Heat, Solar Space Heat, Solar Photovoltaics, Wind (All), Daylighting, Solar Pool Heating, Wind (Small)
Incentive Amount:25%
Maximum Incentive:$1,000 maximum credit per residence, regardless of number of energy devices installed
Eligible System Size:Not specified
Equipment Requirements:System must be new and in compliance with all applicable performance and safety standards; must carry a minimum 2-yr warranty on collectors, heat exchangers, and storage units; other equipment and installation must carry a minimum 1-yr warranty.
Carryover Provisions:Excess credit may be carried forward for up to five years

Authorities

Name:A.R.S. § 43-1083
Effective Date:01/01/1995

Incentives

Technologies:Solar - Passive, Solar Water Heat, Solar Space Heat, Solar Photovoltaics, Wind (All), Daylighting, Solar Pool Heating, Wind (Small)
Sectors:Residential
Parameters:The incentive is 25.00 %, The incentive has a maximum of $1000.00

Summary

Arizona's Solar Energy Credit is available to individual taxpayers who install a solar or wind energy device at the taxpayer's Arizona residence. The credit is allowed against the taxpayer's personal income tax in the amount of 25% of the cost of a solar or wind energy device, with a $1,000 maximum allowable limit, regardless of the number of energy devices installed. The credit is claimed in the year of installation. If the amount of the credit exceeds a taxpayer’s liability in a certain year, the unused portion of the credit may be carried forward for up to five years. Taxpayers who lease a system or enter into a power purchase agreement with a third party who owns the system are not eligible to receive the credit (see ITR 13-4 for more information).

Qualifying technologies include solar domestic water heating systems, solar swimming pool and spa heating systems, photovoltaic systems, photovoltaic phones and street lights, passive solar building systems (trombe walls, thermal mass, etc.), solar daylighting systems (excluding conventional skylights), wind turbines, and pumps powered by wind. 

Click the link above to access the relevant  tax form and instructions.

 

 

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