Arizona tax tidbit: solar energy credit

Arizona tax law aims to let its residents take advantage of that state's sunny clime.

Grand Canyon State homeowners who install a solar energy device in their homes may claim a solar energy credit.

The state tax credit for buying and installing a solar energy device is 25 percent of the cost, including installation, or $1,000, whichever is less. If you install more solar equipment in a later year, the cumulative credit cannot exceed $1,000 for the same residence.

And the tax credit isn't refundable. That means it will only zero out what you owe the Arizona tax collector, but the excess won't get you a refund.

However, if you do have excess solar energy credit, you may carry the unused amount forward for up to five consecutive years.

The tax break certainly makes that Southwestern state's legendary heat a tad more tolerable.

Tax trip around the United States: This is
the second in our new series highlighting tax
information from the 50 U.S. states and our nation's capital.

The State Tax Departments page provides links to
official state and District of Columbia revenue Web sites so that you
can find out more about your home's tax laws and filing requirements. You also can check out info on other locales
in our Complete
menu of tasty state tax tidbits.

As the 2010 tax season progresses, a different state will be
featured each day as noted in Don't forget your state taxes! Check back to see
what tax tidbit we share about your home state!

Related posts:

• State Tax Departments
• State Tax Tidbits
• Don't forget your state taxes!
• Alabama tax tidbit
• The 12 Tax Tips of Christmas: #2 Improve your home
  
• 9 states of no-tax note … sort of

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