Do you want to learn more about the Arizona solar tax credit? You can go over the facts about this credit with our team at Solar Solution AZ, Arizona’s top-rated commercial solar panel contractors. Get the details about solar power by calling us at 520-858-0220.
Your Options for the Arizona Solar Tax Credit
Property owners in Arizona have several ways to save money on installing these systems through tax credits. When you install solar panels, you may consider the options below.
Federal Solar Investment Tax Credit (ITC)
The Solar ITC allows you to reduce the tax you owe to the Federal government by a maximum of 26% of the cost of your solar energy device. This credit also applies to batteries used to store solar energy on your property.
The Federal ITC can reduce your payments on your personal income tax. However, it does not directly reduce your taxes—it simply drops your tax liability for all applicable years.
Generally, the Solar ITC applies to the year you install your solar power system. However, property owners can use this credit over multiple years in some cases. Speak to a solar professional to learn more.
Arizona State Residential Solar Tax Credit
Property owners may also qualify for state tax credits for their solar systems. This credit may cover 25% of the total cost of your system. However, the credit only covers a maximum of $1,000, so it may not address 25% of the costs for all property owners.
Note that you may claim the credit over several years. However, even if you draw on the credit for multiple years, you cannot exceed the $1,000 limit. You may learn more about this credit with a tax professional.
Additional Solar Tax Savings in Arizona
Tax credits represent only one way to save money on installing a solar-powered system. You may also qualify for an exemption for some components of your solar energy system through the following.
Energy Equipment Property Tax Exemption
The property tax exemption gives you a chance to exempt the cost of your:
- Solar panels
- Solar pool, water, and space heaters
- Solar-powered appliances
- Solar thermal heaters
You may want to discuss this exemption with a tax professional to ensure that it covers all applicable pieces of solar equipment.
Solar Equipment Sales Tax Exemption
Finally, Arizona offers a sales tax exemption for the sale of solar systems. This exemption helps reduce the tax burden when purchasing any solar energy device. It also helps mitigate the expenses of installing your solar power system, helping you save money.
Speak to Us About the Arizona Solar Tax Credit
You can turn to our team for all your solar power installation needs. Find out more about powering your home or charging EVs with solar power by reaching out to us. We’re ready to apply our solar experience to answer your questions.
Call Solar Solution AZ at 520-858-0220 to learn about your Arizona solar tax credit in Tucson.
