Solar & Battery Regulation & Incentive Programs

Residential Solar and Wind Energy Systems Tax Credit

Program Overview


Category:
Financial Incentive
Program Type:
Personal Tax Credit
Implementing Sector:
State
State:
Arizona
Eligible Storage Technologies:
Solar - Passive, Solar Water Heat, Solar Space Heat, Solar Photovoltaics, Wind (All), Daylighting, Solar Pool Heating, Wind (Small)
Website:
https://azdor.gov/forms/tax-credits-forms/credit-solar-energy-credit
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
Administrator:
AZ Department of Revenue
Applicable Sectors:
Residential
Start Date:
01/01/1995
Last Updated:
09/27/2018

Eligibility Criteria

EligibilitySectorsTechnologies
%25.0000
Residential
Solar - Passive
Solar Water Heat
Solar Space Heat
Solar Photovoltaics
Wind (All)
Daylighting
Solar Pool Heating
Wind (Small)
max $1000.0000
Residential
Solar - Passive
Solar Water Heat
Solar Space Heat
Solar Photovoltaics
Wind (All)
Daylighting
Solar Pool Heating
Wind (Small)

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.

 


Authorities

NameEnacted DateEffective DateExpired Date
A.R.S. § 43-108301/01/1995