Residential Solar and Wind Energy Systems Tax Credit

Program Residential Solar and Wind Energy Systems Tax Credit
Category Financial Incentive
Implementing sector State
Last Update
State Arizona
Administrator AZ Department of Revenue
Website https://azdor.gov/forms/tax-credits-forms/credit-solar-energy-credit
Start Date
Technologies Solar - Passive, Solar Water Heat, Solar Space Heat, Solar Photovoltaics, Daylighting, Solar Pool Heating
Sectors Residential

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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