Tax Credits and Incentives
Federal Tax Credits
Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes & new construction) for:
Geothermal Heat Pumps
Solar Water Heaters
Small Wind Energy Systems
Please see IRS Form 5695 for specific requirements and deadlines.
More information can also be found at the following link: Energy Star Tax Incentives.
Arizona Tax Credits
Solar Energy Property Tax Exemption - Arizona offers a property tax exemption of 100% of the increased value of solar energy devices and any other device or system designed for the production of solar energy for on-site consumption.
Solar and Wind Equipment Sales Tax Exemption - Arizona provides a sales tax exemption for the retail sale of solar energy devices and for installation of solar energy devices by contractors.
Income Tax Subtraction for Energy Efficient Residences - Arizona provides an individual income tax subtraction to taxpayers who sell one or more energy efficient single family residences, condominiums or town houses. The credit may be claimed in the year that the house is sold. It is equal to 5% of the sales price excluding commissions, taxes, interest, points, and other brokerage, finance and escrow charges and cannot exceed $5,000.
Qualifying Wood Stove Deduction - This incentive allows Arizona taxpayers to deduct the cost of converting an existing wood fireplace to a qualifying wood stove.
Residential Solar and Wind Energy Systems Tax Credit - Arizona's Solar Energy Credit is available to individual taxpayers who install a solar or wind energy device at the taxpayer's Arizona residence. The credit is allowed against the taxpayer's personal income tax in the amount of 25% of the cost of a solar or wind energy device, with a $1,000 maximum allowable limit, regardless of the number of energy devices installed.
APS Tax Credits and Incentives
APS - Renewable Incentive Program - Through the Renewable Incentive Program, Arizona Public Service (APS) offers customers who install various renewable energy sources the opportunity to sell the credits associated with the energy generated to APS.
Solar Water Heating Systems
Solar Space Heating
Click here for a chart which breaks down all of the APS residential solar and renewable energy incentives.
APS - Energy Efficient AC Rebate Program - APS offers an incentive for its residential customers to upgrade their AC units. The rebate amount is up to $400/unit for qualifying products.
APS - GEOSmart Financing Program - APS customers may receive a loan of up to $50,000, with interest rates as low as 7.99%, for a solar-energy system.