Solar Tax Credits and Incentives

Arizona State Tax Credit

The state of Arizona offers residential customers a 25% or $1,000 maximum credit per residence of solar installation. The credit is claimed in the year of installation. If the amount of the credit exceeds the taxpayer’s liability in a certain year, the unused portion of the credit may be carried forward for up to five years.

Federal Tax Credit

The federal government offers a 26% tax credit to residential customers with no maximum. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. This 26% tax credit is available for systems placed in service by 12/31/2020.

The federal tax credit will decrease to 22% in 2021.

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