Homeowners can claim a 25% tax credit (maximum of $1,000 credit) on solar devices installed on a residence. This is a one time tax credit and restricts the homeowner for additional credits for solar purchases made for the same residence in subsequent years.

Sales Tax Exemption

In Arizona, "solar devices" can now be sold to Arizona customers without having to charge state sales tax. County and city sales taxes still apply for those tax authorities that collect their own sales taxes.

These guidelines and procedures are intended to more specifically address the issues regarding Arizona's legislation, including, but not limited to tax credits.

Solar Energy Credits

Arizona law provides an individual taxpayer with a solar energy credit for installing a solar energy device in the taxpayer's residence located in Arizona. This publication was updated in September 2004 and is current as of April 2009.

This 30% tax credit is available to homeowners with no cap beginning 1/1/2009 (part of the Emergency Economic Stabilization Act of 2008).

The federal business energy tax credit is a 30% tax credit available to commercial businesses that invest in or purchase energy property in the United States.