Homeowners Tax Credits!
Homeowners can claim a 25% tax credit on up to $4,000 of solar devices installed
on a residence. This is a one time tax credit and restricts the homeowner for
additional credits for solar purchases made for the same residence in subsequent
years.
The law establishing the tax credit imposed several requirements on the seller
of solar devices in order to qualify the equipment and application. Title 44,
chapter 11, article 11 of the Arizona revised statues (44-1761- Definitions, and
44-1762 - Solar energy device warranties; installation standards; inspections)
detail the requirements. The Arizona Department of Commerce has issued
guidelines (in 1993) for the required certificate to the buyer that the solar
energy device complies with the requirements of the tax credit. the Arizona
Registrar of Contractors later assumed this responsibility but has not yet
issued any further requirements.
The Arizona Registrar of Contractors is responsible for licensing installers of
solar devices and is in the process of establishing appropriate solar electric
standards for installers. Licensing of domestic solar hot water installers has
been in place for several years. There is also an installer certification
program for solar hot water system installers.
The actual tax credit is obtained by filing form 310, Credit for Solar Energy
Devices, as an attachment to the regular annual income tax return (Arizona DOR
form 140).
For more information, visit ADOR's Solar Energy Credit Page (PDF)
http://www.revenue.state.az.us/brochure/543.pdf
Download the Tax Forms:
Federal Business Energy Tax Credit!
The federal business energy tax credit is a 30% tax credit available to
commercial businesses that invest in or purchase energy property in the United
States. Energy property is defined as either solar or geothermal energy. Solar
energy property includes equipment that uses solar energy to generate
electricity, to heat or cool (or provide hot water for use in) a structure, or
to provide solar process heat. Geothermal energy property includes equipment
used to produce, distribute, or use energy derived from a geothermal deposit.
For electricity produced by geothermal power, equipment qualifies only up to,
but not including, the electrical transmission stage.
The energy property must be operational in the year in which the credit is first
taken. The property must also be constructed by the taxpayer and used by the
taxpayer. Energy property does not include public utility property, passive
solar systems, pool heating, or equipment used to generate steam for industrial
or commercial processes.
Credit may not be taken if financing for the project is subsidized or from
tax-exempt private activity bonds. The tax credit is limited to $25,000 per
year, plus 25% of the total tax remaining after the credit is taken. Remaining
credit may be carried back to the three preceding years and then carried forward
for 15 years.
The Energy Policy Act of 1992 ensures that this tax credit in ongoing and has no
expiration date. Use Form 3468 to claim the investment credit. The IRS general
web site listed below under "Contact" provides a "Forms and Publications
Finder." Enter the form or publication name or number that you are interested
in, and click on "GO" to receive the requested form or publication.
Information provided by J. Arwood, Arizona Department of Commerce Energy Office
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