Arizona's Solar and Government Solar and Green Energy Tax Incentives
As the world becomes increasingly aware of the need to reduce greenhouse gas emissions and embrace renewable energy, solar power has emerged as a popular choice for homeowners and businesses alike. In Arizona, the abundance of sunshine and warm temperatures make it an ideal location for solar energy. Not only is it environmentally friendly, but it can also save residents and businesses a significant amount of money on their energy bills. Additionally, there are government solar and green energy tax incentives available that can help reduce the upfront cost of installing a solar system.
One of the main tax incentives available in Arizona is the federal investment tax credit (ITC), which provides a credit of 26% of the total cost of a solar energy system. This credit is available for both residential and commercial properties and can be applied to the owner's federal income taxes. The ITC is set to decrease to 22% in 2023 and will expire for residential properties in 2024 unless renewed by Congress.
In addition to the federal tax credit, Arizona also offers state tax incentives. One such incentive is the solar energy credit, which provides a credit of up to $1,000 for residents who install solar energy systems. Business owners can also take advantage of a state tax credit equal to 10% of the cost of a solar energy system, up to $25,000.
Furthermore, there are property tax exemptions available for homeowners and businesses that install solar energy systems. Under Arizona law, solar energy systems are exempt from property taxes for 20 years. This means that installing a solar system will not increase the property tax assessment for the property owner.