As of my last update in January 2024, here are the federal and state tax credits available for solar panels in Arizona:
Federal Investment Tax Credit (ITC): The federal government offers a tax credit known as the Investment Tax Credit (ITC) for residential solar installations. This credit allows homeowners to deduct a percentage of the cost of their solar panel system from their federal taxes. As of 2022, the ITC provides a credit equal to 26% of the total cost of the solar installation. This credit is set to decrease to 22% in 2023 and will expire for residential installations after 2023 unless extended by legislation.
Learn more about Federal Income Tax Credits by reading the Department of Energy’s Homeowner’s Guide to Federal Tax Credit for Solar.
Arizona State Tax Credits: Arizona offers a state tax credit for solar energy installations. However, as of my last update, this tax credit had expired. Previously, Arizona residents could claim a state tax credit of up to $1,000 for solar panel installations on their primary residence. It’s essential to check with the Arizona Department of Revenue or a tax professional for the most up-to-date information on state tax credits for solar energy.
Learn more about Arizona State Tax Credits by vising the Arizona Department of Revenue.
In addition to tax credits, Arizona may offer other incentives and rebates for solar energy, such as net metering programs, property tax exemptions, and utility incentives. These incentives can vary by utility provider and may change over time, so it’s essential to research available programs and consult with local authorities or a solar installer for the latest information.
Remember that tax incentives and credits are subject to change, and eligibility criteria may apply. It’s advisable to consult with a tax professional to understand how these incentives apply to your specific situation and to ensure compliance with all requirements.
We look forward to working with you on your home’s new solar panel system!
