Residential Solar and Wind Energy Systems Tax Credit
| Program Type | Personal tax credit |
|---|---|
| Technologies | Solar-powered systems, photovoltaics, wind energy |
| Amount | $1,000 maximum credit |
| Required Documentation | Receipt of cost |
| Official Web Site | http://www.azdor.gov/Portals/0/Brochure/543.pdf |
Basically, if consumers install wind or solar power equipment on their property, Arizona will give them a personal tax credit for 25 percent of the cost of the equipment and installation, up to $1,000. If the amount of the credit is more than the person’s tax obligation for that year, the excess amount can be carried for up to five years in subsequent returns.
Qualifying equipment can range from devices that generate renewable power, like photovoltaics (essentially solar panels) or wind turbines, to systems that just harness the energy to fill an existing power need—also called “passive” systems—like solar water heaters. However, such passive systems must meet certain requirements. The basic guideline is that it must be “clearly designed as a solar energy device.” So, for example, a solar daylighting system, which redirects natural light to maximize its use, can qualify; a skylight, however, cannot.
Any property owner who installs qualifying equipment on their property can get the credit. The state does require that you obtain a certificate from the seller of the equipment stating that the equipment complies with Arizona’s solar energy equipment requirements—and when applying for the tax credit itself, be prepared to fill out extensive forms. You can find more information on how to qualify for the credit here.
