Arizona Solar Energy System Tax Credit

About This Program

Arizona provides a 25% state income tax credit on qualifying solar energy devices installed at a residence, up to $1,000 per residential property. Combined with the 30% federal Investment Tax Credit (ITC), Arizona homeowners can offset up to 55% of solar system costs. Unused AZ credit may carry forward up to 5 years if not fully utilized in the year of installation.

25% AZ credit up to $1,000 + 30% federal ITC. On a $10,000 system: $1,000 AZ credit + $3,000 federal ITC = $4,000 total tax savings. AZ credit carries forward up to 5 years.

Key Details

• 25% AZ state tax credit on solar energy device installation
• Maximum $1,000 credit per residential property
• Combine with 30% federal ITC for up to 55% total offset
• AZ credit carries forward up to 5 years
• File with Arizona state income tax return

How to Apply

Deadline: Annual – file with AZ state income tax return