Arizona Residential Solar Tax Credit

Arizona Department of Revenue

Available Solar & Renewable

About This Program

Arizona state personal income tax credit equal to 25% of the cost of installing solar energy devices, up to $1,000. Can be combined with federal solar tax credits. Available for solar panels, solar water heaters, and solar pool heaters installed on Arizona residences.

State tax credit is 25% of installation cost, maximum $1,000

Verified against Arizona Department of Revenue's official page on 2026-06-17.

Data last verified 2026-06-09. How we verify our data.

Key Details

  • Tax credit equal to 25% of solar installation cost
  • Maximum credit of $1,000 per residence
  • Available for solar panels and solar water heaters
  • Can be combined with federal 30% tax credit
  • Claim on Arizona personal income tax return

How to Apply

A grant-savvy contractor in Show Low, AZ can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

You will likely need a contractor to apply

Projects like this almost always need a licensed contractor, and many grants ask for a written estimate as part of your application. Lining up a contractor in Show Low early keeps your application moving.

Get matched with a contractor

Each program sets its own contractor rules. Check the official program page for exact requirements.

Your application paperwork

Form to file: IRS Form 5695

This is a federal tax credit, not a grant you apply for. You claim 30 percent of the cost of a qualifying solar or clean energy system on your federal tax return using Form 5695.

Steps to apply

  1. Have your solar or clean energy system installed and pay for it.
  2. Keep the itemized invoice and proof of payment.
  3. Complete IRS Form 5695 and file it with your Form 1040 for the year the system was placed in service.
  4. If the credit is larger than your tax bill, carry the unused amount forward to next year.

Documents you will likely need

  • Itemized invoice from your installer showing the system cost.
  • Proof of payment.
  • Manufacturer certification statement for the equipment.
  • Your federal tax return (Form 1040) for the year of installation.

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Through tax year 2024 (subject to legislative extension)

Questions about this program?

Ask us. It is free, and a real person answers within a business day.

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