Arizona Solar Water Heater Tax Credit

The water must be used in the dwelling.

Arizona solar water heater tax credit.

A nonrefundable individual tax credit for an individual who installs a solar energy device in taxpayer s residence located in arizona. Solar hot water heaters solar electric equipment wind turbines and fuel cell property are examples of equipment eligible for the tax credit. The renewable technologies eligible are photovoltaics solar water heating other solar electric technologies wind fuel cells geothermal and heat pumps. Thanks to the solar equipment sales tax exemption you are free from the burden of any arizona solar tax.

Equipment and property tax exemptions. Arizona credit for solar hot water heater plumbing stub out and electric vehicle charging station outlet. File tax form 5695 with your tax return. New york offers a state tax credit of up to 5 000.

Arizona and massachusetts for instance currently give state income tax credits worth up to 1 000 toward solar installations. Credit for solar hot water heater plumbing stub outs and electric vehicle recharge outlets. 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. Arizona department of revenue 602 255 3381 1600 west monroe street phoenix az 85007.

The tax credit is now available to homeowners in some form through 2021. The credit is not available for expenses for swimming pools or hot tubs. All energy star certified tankless water heaters meet the requirements for the non business energy property tax credit. Here are the specifics.

Water heaters non solar are a part of residential energy property costs. The tax credit remains at 30 percent of the cost of the system. All energy star certified solar water heaters qualify for the tax credit. This 75 credit is provided for in arizona revised statutes 43 1090 and 43 1176 and is a nonrefundable individual and corporate income tax credits for the installation of solar hot water heater plumbing stub outs and electric vehicle recharge outlets in houses or dwelling units.

Form year form. Solar water heaters remain a cost effective solution for homeowners to reduce their utility bills particularly if they are replacing an electric water heater which arizona has in abundance. There s no dollar limit on the credit for most types of property although the credit for fuel cells is capped at 500 per half kilowatt of power capacity.