Arizona Tax Incentive and Rebates
Get the most out of your savings with Arizona tax incentives
Residential Arizona Solar Tax Credit
This credit can give you a reimbursement of up to 25% of the cost of your solar panels, so you can spend less and get the installation you want. This credit comes off of your taxes, in the year you install your system. That can help you protect the planet, and you won’t need to pay as much to get started. The credit is up to $1,000, so if your panels cost more than $4,000 you won’t get a full 25% off the price. Depending on the size of your house and your specific needs, your panels may or may not be in that price range.
Arizona ranked top 5 in The Nation For Solar-Powered Electricity In 2020
26% of your solar system can be claimed as a tax deduction to your federal tax.
Due to high sun exposure an Arizona solar system can produce about 70% more power than in other states.
The Federal Solar Tax Credit
It’s not just the state that has tax incentives, as the federal government has them, as well. The investment tax credit allows you to reduce the cost of the PV solar energy system you purchase by 26%. This is only for people who buy the system outright or use a solar loan. You also need to make enough money for the tax credit to be meaningful, or you won’t really benefit from this. Still, it’s worth considering when you’re planning to buy a solar energy system and want to save as much money on it as possible over time
Equipment and Property Tax Exemptions
This exemption removes all Arizona solar tax. That means you won’t pay sales tax on the cost of your system purchase. You also won’t have to pay additional property taxes for the amount of value you add to your home due to solar panels. Depending on the property tax rate and value of your home, along with the price you pay for your solar system, that could add up to a significant amount of money you would be saving
What's the Bottom Line With Solar Energy?
Overall, solar energy can be a great choice for homes. It can help you save money and also make it easier to protect the planet. But the key is to make sure you’re getting the right system for your home and its needs. If you’re spending a lot of your income on electric bills, a solar installation might be right for you. The tax incentives and credits that help you offset the cost will make it easier for you to purchase the system, and its use will mean lower power bills so you can spend more time enjoying the Arizona sunshine.
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Depending on a solar purchase or solar lease upon several other factors without limitations, all play apart in solar tax credits and rebates including equipment tax incentives.
*A tax professional is highly recommended to give you accurate determination of these tax incentives and rebates.