As one of the sunniest states in the U.S., Arizona has seen some of the most impressive growth in solar installations in the country. You’ve probably heard, “When life gives you lemons, make lemonade.” What about: “When life gives you a beautiful desert, make solar energy.” It’s easy with these Arizona solar programs.
The Top-rated Arizona solar tax credit and state incentives
There are several Arizona solar tax credits and exemptions that can help you go solar:
Residential Arizona solar tax credit
The Residential Arizona Solar Tax Credit reimburses you 25 percent of the cost of your solar panels, up to $1,000, right off of your personal income tax in the year you install the system.
Equipment and property tax exemptions
Thanks to the Solar Equipment Sales Tax Exemption, you are free from the burden of any Arizona solar tax. Therefore, you aren’t required to pay any sales tax on the purchase of your solar system. Similarly, the Energy Equipment Property Tax Exemption means you won’t have to pay any additional property taxes on the value you are adding to your home by investing in solar panels.
Don’t forget about the solar federal tax credit
On top of these state tax rebates and exemptions, you will also qualify for a huge tax credit from the Federal government. Known as the solar Investment Tax Credit (ITC), this rebate is worth 30 percent of the system cost, and will be deducted from your federal income tax. Keep in mind that the federal ITC applies only to those who buy their PV system outright (either with a cash purchase or solar loan), and that you must have enough income for the tax credit to be relevant.