How to get the Tax Credits and Rebate in Arizona
30% Federal Tax Credit
The federal Inflation Reduction Act provides a tax credit for individuals and businesses that install solar energy systems on their property. The credit is equal to 30% of the cost of the solar energy system, including labor and installation costs. There is no cap on the amount that can be claimed, and the credit can be claimed for both residential and commercial properties, subject to certain limitations based on your tax liability.
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​To claim the Residential Energy Credit on your federal tax return, you must use form 5695. This form is used to claim the credit for solar energy systems, as well as other types of energy-efficient improvements to your home, such as insulation and energy-efficient windows.
AZ State Tax Credit
Arizona has a state tax credit for solar energy systems. The credit is equal to 25% of the cost of the solar energy system, up to a maximum credit of $1,000 for residential properties and $50,000 for commercial properties. The process for claiming the rebate involves the following steps:
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Install an eligible solar energy system on your property.
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Obtain a certification from the manufacturer or a qualified installer that the system meets the necessary requirements for the tax credit.
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File your Arizona state taxes and claim the tax credit on your state tax return.
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It's important to note that these credits are subject to change and availability. It's recommended to consult with one of our solar energy experts to ensure that you are eligible for the credit and that you claim it correctly on your tax return or to get more information on the current status of these programs.
APS Battery Rebate
The Arizona Public Service (APS) offers a battery rebate for customers who install an eligible battery storage system in combination with their solar energy system. The process for claiming the rebate involves the following steps:
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Install an eligible battery storage system. The system must be connected to a residential solar photovoltaic (PV) system and must be approved by APS.
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Obtain a certification from the manufacturer or a qualified installer that the system meets the necessary requirements for the rebate.
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Submit a rebate application to APS. The application must include the certification, a copy of the invoice, and other required documentation.
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APS will review the application and, if approved, issue a rebate check.
It's important to note that the rebate amount and the requirements for the battery storage system may change over time, so it's recommended to check with APS or one of our solar energy experts for the most up-to-date information.