Residential Solar and Wind Energy Systems Tax Credit - State of Arizona

What qualifies

This credit may be used for the installation of solar or wind energy devices on the taxpayer’s residence. These include “solar domestic water heating systems, solar swimming pool and spa heating systems, photovoltaic systems, photovoltaic phones and streetlights, passive solar building systems (Trombe walls, thermal mass, etc.), solar daylighting systems (excluding conventional skylights), wind turbines, and pumps powered by wind.”  See Arizona Title 44, Chapter 11, Article 11 for more information on the technical criteria of a qualifying system.

Incentive value

Taxpayers can subtract from their personal income tax an amount equal to 25% of the cost for purchasing a solar or wind energy device, up to a maximum of $1,000, regardless of how many energy devices are installed. If the allowable tax credit exceeds the taxes otherwise due each year, the amount of the credit not used may be carried forward for up to five years.

Who is eligible

Arizona taxpayers who pay for qualifying upgrades

When the credit is available

The credit does not have an end date as of May 2024.

How to claim the credit

You may claim the credit when you file your tax return.

1. First, check to see if the upgrade you are interested in purchasing qualifies.
2. Purchase your equipment.
3. Fill out Arizona Form 310.
4. Include the form with your tax return.

More information about the credit is available on this website.

Disclaimer: None of the information presented on this website should be considered official legal or financial advice. Please contact a licensed tax professional for additional information.