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Arizona Solar Tax Credits

Arizona is a land of sunshine with about 299 sunny days every year. This makes the Grand Canyon State a perfect location to harness the immense power of the sun for electricity. 

It is one of the many renewable energy resources which have made the state among the leading solar markets in the country. In 2018, for instance, Arizona was ranked second in electricity generation from solar energy. 

Homeowners and businesses have driven solar energy consumption across the state, and local solar installers are among the busiest in the country. Among other reasons for the increased solar energy, installation is the availability of incentives.

The Arizona solar tax credits are a benchmark in the country with more states following suit to encourage the use of clean, renewable energy. The incentive has made solar energy installation more affordable, and it is one of the reasons driving the thriving solar industry here.

Working with a professional solar installer like Total Solutions helps you find these solar energy incentives and maximize them. These professionals help you throughout the application process for the solar tax credit.

If you want to save money through an AZ solar tax credit, read on to find all available incentives.

Top Rated AZ Solar Tax Credits

Here are some of these top-rated tax credits for solar installations:

  • Federal Solar Investment Tax Credit

The Federal Solar Investment Tax Credit (ITC) is a tax credit that saves you 26% off your solar panel installation. This is deductible from your federal income tax return. It is a popular cost-saving option for consumers who pay cash for their solar installation or use a solar loan.

To qualify, you must have enough income for the credit. At the end of 2020, the federal ITC steps down to 22% off your solar panel installation.  By working with a professional solar installer in AZ, it is easy to leverage this tax credit solar panels, Arizona.

This incentive applies to both residential and commercial systems with no cap on its value. You can claim this solar tax credit when you file your yearly federal tax return.

  • Residential Arizona Solar Tax Credit

This is a personal solar tax credit that reimburses you 5% of the cost of your solar panels, up to $1,000$1,000 maximum credit per residence irrespective of the number of energy devices installed.

This incentive comes right off of your income tax for the same year you install the solar system. The tax credit applies to different solar-powered technologies, including solar photovoltaics, solar water heat, solar pool heating, and solar space heat.

  • Equipment and Property Tax Exemption

Another helpful incentive for consumers who want to install solar systems is the Equipment and Property Tax Exemption. This tax exemption frees you off solar tax, meaning you don’t have to pay any sales tax on the purchase of your solar system.

Leveraging the Solar Tax Credits

Finding an Arizona solar tax credit is not easy, and many people who would otherwise benefit from lower solar installation miss out. When you work with an established local solar installer, it’s easier to leverage these solar installation incentives.

Total Solutions has worked with many clients across Arizona to help them install solar systems at a lower cost using these tax credits. Get in touch today and let’s work out which tax credits your solar installation project qualifies for.

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