Incentives and Tax Credits

Incentives and Tax Credits

Arizona residents can take a direct credit to their Arizona state taxes of 25% of the cost of purchasing and installing a photovoltaic system. The maximum tax credit per residence is $1,000 and may be carried forward for five years. See AZ Form 310 for details.

Commercial taxpayers can receive a Federal tax credit of up to 40% of the cost for purchasing and installing a photovoltaic system. Construction must commence prior to July 4, 2026. Commercial customers may also take accelerated depreciation (5-years). For commercial taxpayers, see IRS Form 3468 for details.