There is no better time than now to bring the power of solar to your home or businesses! This incentive makes going solar more affordable than ever! Also known as the Solar Investment Tax Credit (ITC), there is no cap on its value, and the deduction applies to equipment AND installation of both residential and commercial solar systems. You can file your claim as soon as installation begins and as long as your solar energy system is up and running by December 31, 2023.
The federal solar tax credit gives you a dollar-for-dollar reduction against your federal income tax. If the federal tax credit exceeds your tax liability, the excess amount may be carried forward to the following tax year.
Starting in 2021, the value of the tax credit will scale down to 22 percent. After 2021, the tax credit for residential solar will end. However, it’s important to note that the ITC credit applies to those who own their systems. It does not apply to leased solar systems or those with PPA agreements with solar installers.
Arizona’s State and Local Solar Incentives
Energy Equipment Property Tax Exemption Arizona homeowners with solar panels receive another great benefit from the state—although your solar system will increase the value of your home, it will be exempted from higher property taxes. As we have written before, the average home’s sales value increases by $5,911 per solar kilowatt. Thus, a home with a 3.1-kilowatt system could raise that home’s value by nearly $18,000—with no additional tax liability!
Solar and Wind Equipment Sales Tax Exemption Arizona’s Solar and Wind Equipment Sales Tax Exemption is another cost-offsetting benefit geared towards green technologies like solar and wind-power. This perk saves consumers an extra 5.6 percent in state sales tax, further lowering the cost of a residential or business solar array.
If you are interested and want to find out more, we’d love to hear from you!
Reach out today to schedule a free consultation with our team. Our certified energy consultants have the knowledge and expertise to guide you as you tap into the high-impact power of solar. We will discuss your energy needs and budget, and inspect your roof’s capability to determine whether or not solar is the right fit for your family or business.
Going solar has never been easier, and there is no time like the present!
Watch this space for more about financing options for your solar system!