Arizona Commercial and Residential Renewable Energy Tax Credit

An individual or corporate income tax credit is available for Arizona taxpayers that own a qualified energy generator that first produces electricity from and after December 31, 2010 and before January 1, 2021, using solar light, solar heat, wind or certain types of biomas. To be eligible to take the income tax credit for renewable energy, a tax payer must obtain a Certificate of Renewable Energy Production Tax Credit from the Arizona Department of Revenue.

At Harmon Solar, we help businesses and homeowners navigate through incentives and tax credits to ensure our customers are receiving all that is available in incentives, rebates and tax credits from utility companies, local, state and federal governments.

History of the Commercial Solar & Wind Tax Credit

Arizona’s tax credit for solar and wind installations in commercial and industrial applications was established in June 2006. Commonly referred to as the Arizona Solar Tax Credit, the Commercial Solar & Wind Tax Credit provides successful applicants with a 10% of their total installation cost up to $25,000.00.

The Arizona Solar Tax Credit was initially created under the Energy Policy Act of 1992. It was then valued at 1.5 cents/kilowatt-hour, which has since been adjusted annually for inflation to 2.2 cents/kilowatt-hour. This number is expected to rise accordingly as per each year of availability. A number of changes have been made to further benefit Arizona based companies to collect on their Tax Credits.  Harmon Solar can discuss all of the improvements with you.

The Arizona Solar Tax Credit currently applies to the taxable years beginning January 1, 2006 right through to December 31, 2018 and allows companies located in Arizona who have previously installed qualifying solar methods to also recuperate their costs using this incentive. The extended lifetime of the Arizona Solar Tax Credit was set to encourage more business owners to consider the benefits of solar and wind power in the future.

 

Solar Tax credits Offered by Arizona

The Arizona Solar Tax Credit is available to anyone who owns or operates a business in Arizona. At Harmon Solar, we want to make sure all homeowners and businesses have the incentive details:

  •  – A maximum credit per Arizona taxpayer of $25,000 for any one building in the same year.
  • – $50,000 in total credits in any one tax year.
  • – 2.2 cents/kilowatts-hour.

 

If the Arizona Solar Tax Credit exceeds the taxpayer’s income tax liability, the amount of the claim not used to offset taxes may be carried forward for not more than five consecutive taxable years as a credit against subsequent years’ income tax liability.

To qualify for the Arizona Solar Tax Credit, Harmon Solar will submit an application to the Arizona Department of Commerce (DOC). The DOC will review applications, provide an initial certification to qualifying installations, and issue a Commercial Solar & Wind Tax Credit certificate to Harmon Solar once the installation is complete and approved. The Arizona Department of Revenue will also receive a copy of the Commercial Solar & Wind Tax Credit credit (the Arizona Solar Tax Credit) certificate as Harmon Solar endeavor to offer a complete service.

For more information, contact Harmon Solar today and receive a free consultation on solar panel installation.