Solar Panel Rebates In Arizona

If the amount you owe in income taxes is less than the amount of your credit the excess credit can be carried over to the next year.

Solar panel rebates in arizona. Arizona offers a great income tax creditfor those installing solar devices. Solar power rebates are incentives federal or state governments offer to reduce the cost of going solar. Depending on the rebate program the utility may reimburse the system based on how many kilowatt hours the system is anticipated to produce over a 20 year lifespan. Arizona and massachusetts for instance currently give state income tax credits worth up to 1 000 toward solar installations.

The federal government provides a solar tax credit known as the investment tax credit itc that allow homeowners and businesses to deduct a portion of their solar costs from their taxes. Arizona has a state rebate program. This credit offers 25 off the gross cost of the system up to a maximum credit of 1 000. The residential arizona solar tax credit reimburses you 25 percent of the cost of your solar panels up to 1 000 right off of your personal income tax in the year you install the system.

Equipment and property tax exemptions thanks to the solar equipment sales tax exemption you are free from the burden of any arizona solar tax. After the tax credits we subtract your first year s energy savings which we estimate to be about 1 576. A nonrefundable individual tax credit for an individual who installs a solar energy device in taxpayer s residence located in arizona. How does the 26 federal solar tax credit work.

The most significant solar rebate offered in arizona is the credit for solar energy devices from the arizona department of revenue. The credit is equal to 25 of the costs of the system up to 1 000. You can get a lump sum payment or your installer will take the amount off the final installed price. That reduces your cost after the first year to only 16 472.

After claiming the 26 federal solar tax credit and arizona s state tax credit the price is only 2 00 per watt. Rebates require paperwork to be filed. Both homeowners and businesses qualify for a federal tax credit equal to 26 percent of the cost of their solar panel system minus any cash rebates. This puts the average cost of a 5kw system at 13 958 before incentives and 9 325 after claiming incentives.