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.

Solar hot water heaters solar electric equipment wind turbines and fuel cell property are examples of equipment eligible for the tax credit. The renewable technologies eligible are photovoltaics solar water heating other solar electric technologies wind fuel cells geothermal and heat pumps. The residential arizona solar tax credit reimburses you 25 percent of the cost of your solar panels up to 1 000 right off of your personal income tax in the year you install the system. The tax credit is now available to homeowners in some form through 2021.

Here are the specifics. You will need to filter by solar once you open the water heaters product list. 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.

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. Equipment and property tax exemptions. New york offers a state tax credit of up to 5 000. Water heaters non solar are a part of residential energy property costs.

The tax credit remains at 30 percent of the cost of the system. Credit for solar hot water heater plumbing stub outs and electric vehicle recharge outlets. Arizona and massachusetts for instance currently give state income tax credits worth up to 1 000 toward solar installations. Form year form.

Arizona department of revenue 602 255 3381 1600 west monroe street phoenix az 85007. File tax form 5695 with your tax return. Arizona credit for solar hot water heater plumbing stub out and electric vehicle charging station outlet. The credit is not available for expenses for swimming pools or hot tubs.

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. A nonrefundable individual tax credit for an individual who installs a solar energy device in taxpayer s residence located in arizona. The water must be used in the dwelling.