Arizona Solar Water Heater Tax Credit

All energy star certified tankless water heaters meet the requirements for the non business energy property tax credit.

Arizona solar water heater tax credit.

The water must be used in the dwelling. This 75 credit is provided for in arizona revised statutes 43 1090 and 43 1176 and is a nonrefundable individual and corporate income tax credits for the installation of solar hot water heater plumbing stub outs and electric vehicle recharge outlets in houses or dwelling units. Solar water heaters remain a cost effective solution for homeowners to reduce their utility bills particularly if they are replacing an electric water heater which arizona has in abundance. File tax form 5695 with your tax return.

Here are the specifics. A nonrefundable individual tax credit for an individual who installs a solar energy device in taxpayer s residence located in arizona. The tax credit remains at 30 percent of the cost of the system. Arizona department of revenue 602 255 3381 1600 west monroe street phoenix az 85007.

Form year form. Equipment and property tax exemptions. The credit is not available for expenses for swimming pools or hot tubs. The renewable technologies eligible are photovoltaics solar water heating other solar electric technologies wind fuel cells geothermal and heat pumps.

New york offers a state tax credit of up to 5 000. According to energy star water heaters account for 12 of the energy consumed in the home. All energy star certified solar water heaters qualify for the tax credit. The tax credit is now available to homeowners in some form through 2021.

There s no dollar limit on the credit for most types of property although the credit for fuel cells is capped at 500 per half kilowatt of power capacity. Thanks to the solar equipment sales tax exemption you are free from the burden of any arizona solar tax. Arizona and massachusetts for instance currently give state income tax credits worth up to 1 000 toward solar installations. Arizona credit for solar hot water heater plumbing stub out and electric vehicle charging station outlet.

Solar hot water heaters solar electric equipment wind turbines and fuel cell property are examples of equipment eligible for the tax credit. You will need to filter by solar once you open the water heaters product list. Credit for solar hot water heater plumbing stub outs and electric vehicle recharge outlets.