What are Arizona’s Solar Tax Incentives?
The Grand Canyon State, Arizona, is known as one of the top 5 states for solar, and with solar panel and energy storage units price becoming more accessible, more and more people are adopting it by the day. Another thing attracting people to acquire solar in Arizona are several incentives that make transitioning to this sustainable energy source easier and cheaper.
Here, SolarTech will explain to you the three most important of Arizona’s Solar Tax Incentives, and how you can apply for them.
- Arizona Residential Solar Tax Credit
Arizona law provides a solar energy credit for buying and installing a solar energy device at 25% of the cost, to a maximum of $1,000 in total. This includes the cost of installation, and energy storage units.
Eligible homeowners have up to 5 years from installation to claim this credit.
- Federal Solar Tax Credit
In addition to its state credit, Arizona homeowners can also take advantage of the Federal Solar Tax Credit. This credit works similarly, allowing you to reduce the amount of tax you owe by up to 30% (depending on the year of installation) of the cost of your solar system.
- Energy Equipment Property Tax Exemption
Installing a solar power system increases the value of your home. In Arizona, solar panels qualify for a property tax exemption, this means that if your solar panel system boosts the value of your home, you may be eligible for an exemption from taxes on the increased value. This provision ensures that you can enjoy the financial benefits of a higher home value without incurring additional taxes.
Similar to the incentives above, this exemption applies to the following items:
- Solar PV panels
- Energy Storage Units
- Solar Water and Pool Heaters
- Other Solar-Powered Appliances
Whether you’re a homeowner looking to increase your property value or a business aiming to reduce operating costs, now is the ideal time to explore solar energy with Arizona’s Solar Tax Incentives. You can start taking advantage of these incentives, by consulting one of our solar experts at SolarTech.
SolarTech help you on your journey toward a more sustainable and financially beneficial future for you, your home, and your business.