Quick Guide: Arizona Solar Power Tax Incentives

What are the Arizona and Federal Solar Tax incentives in a nutshell? The Arizona tax incentives break up into two different areas: State and Federal:

Arizona State Residential Solar Tax Credit

Homeowners can claim a 25% tax credit on up to $4,000 of solar devices installed on a residence (effectively a maximum credit of $1,000). This is a one time tax credit and restricts the homeowner for additional credits for solar purchases made for the same residence in subsequent years.

Essentially, a person who is purchasing/installing solar power can receive a maximum credit of $1,000 if they spend $4,000 dollars.

Federal Residential Solar Investment Tax Credit (ITC)

This 30% residential solar property tax credit is currently in effect for property placed in service after December 31, 2008 through to December 31, 2016. The credit enables individual taxpayers to offset AMT liability, and to carry unused credits forward to the next succeeding taxable year. For more information, please see the Solar Energy Industries Association (SEIA) Solar Tax Policy Page.

If you have any questions, please feel free to ask in the comments below.