SOLAR TAX CREDITS / EXEMPTIONS
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ARIZONA UTILITY INCENTIVES
SOLAR TAX CREDITS
The Arizona Solar Tax Credit is 25% of the installed cost of an approved solar device or system. This is a one-time credit to a maximum of $1000, which covers all solar devices/systems, and may be carried forward for up to five years.
For example, if you purchase a solar water heating system at an installed cost of $3200, you would qualify for a tax credit of $800. This would leave a $200 credit available for another solar device.
Qualifying items include solar hot water, PV (photovoltaic - solar electric) systems, solar pool heating, PV water pumping, solar daylighting (tubular skylights) and solar ovens.
The Federal Solar Tax Credit is 30% of the cost of the system, including installation. This credit is to a maximum of $2000, which may be carried forward to the succeeding year.
Qualifying items include solar hot water and PV systems. A separate credit can be taken for each system installed.
SOLAR SALES TAX EXEMPTION
Qualifying items are exempt from Arizona state sales tax.
PROPERTY TAX EXEMPTION
For property tax assessment purposes, qualifying items are considered to
add no value to the property.
UTILITY INCENTIVES
Arizona Public Service and Salt River Project offer incentives to customers who replace an electric water heater with solar. The dollar amount of each incentive is based on the estimated annual performance of the system that is installed. The solar system must meet current standards and be installed by a licensed contractor. See the APS and SRP websites for more information.
For more information on federal incentives, and state, local, and utility incentives nationwide, see DSIRE USA on our Links page.
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