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Arizona tax tidbit: solar energy credit

February 24, 2010

Arizona flag 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!

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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Comments
  • Build Your Own Windmill
    16 years ago Reply

    Its good to see the states giving tax credits for green projects as well as the Fed
    I know they don’t have any state income tax in Texas (used to live there) Is there any Texas specific tax incentives?

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