Arizona Solar Energy System Tax Credit
Arizona Department of Revenue
About This Program
The Grant Map catalogs Arizona Solar Energy System Tax Credit in its Tucson, AZ research directory. The record carries audience tags for homeowners; those tags do not establish eligibility or current service coverage.
Arizona provides a 25% state income tax credit on qualifying solar energy devices installed at a residence, up to $1,000 per residential property. Combined with the 30% federal Investment Tax Credit (ITC), Arizona homeowners can offset up to 55% of solar system costs. Unused AZ credit may carry forward up to 5 years if not fully utilized in the year of installation.
25% AZ credit up to $1,000 + 30% federal ITC. On a $10,000 system: $1,000 AZ credit + $3,000 federal ITC = $4,000 total tax savings. AZ credit carries forward up to 5 years.
The cited general URL responded on 2026-07-21; it does not confirm this program or amount.
Record set last reviewed 2026-04-03. How we verify our data.
Other published resources for Tucson, AZ, are listed below. Review each separately and ask the administrators whether they can coordinate funding for the same work:
- Tucson Housing Repair Program (THRP) Up to $25,000 ($15,000 grant + up to $10,000 deferred loan)
- Tucson Annual Residential Rehabilitation (TARR) Program Up to $12,500 ($7,500 grant + up to $5,000 deferred loan at 2% simple interest)
- City of Tucson CDBG Owner-Occupied Rehabilitation Up to $75,000 for substantial rehabilitation
- Pima County Home Repair Assistance Program Varies; deferred loan or grant based on income and project
Key Details
- 25% AZ state tax credit on solar energy device installation
- Maximum $1,000 credit per residential property
- Combine with 30% federal ITC for up to 55% total offset
- AZ credit carries forward up to 5 years
- File with Arizona state income tax return
How to Apply
Some programs require contractor estimates, licenses, or inspections. A cited link may be general, so confirm the current rules with the administrator before hiring; a directory match does not guarantee contractor eligibility or funding.
You may need a contractor or estimate
Some programs for this project type ask for a license, inspection, or written estimate. Confirm the rule before contacting a contractor in Tucson.
Get matched with a contractorEach administrator sets its contractor rules. Confirm exact requirements directly; the cited URL may be a general agency page.
Your application paperwork
Form to file: IRS Form 5695
This is a federal tax credit, not a grant you apply for. You claim 30 percent of the cost of a qualifying solar or clean energy system on your federal tax return using Form 5695.
Steps to apply
- Have your solar or clean energy system installed and pay for it.
- Keep the itemized invoice and proof of payment.
- Complete IRS Form 5695 and file it with your Form 1040 for the year the system was placed in service.
- If the credit is larger than your tax bill, carry the unused amount forward to next year.
Documents you will likely need
- Itemized invoice from your installer showing the system cost.
- Proof of payment.
- Manufacturer certification statement for the equipment.
- Your federal tax return (Form 1040) for the year of installation.
Requirements vary by program and locality. Confirm the exact rules and application route with the administrator. We can help you prepare your paperwork, but you submit it yourself.
Deadline: Annual, file with AZ state income tax return
Questions about this program?
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Frequently asked questions
What amount is listed for Arizona Solar Energy System Tax Credit in Tucson, AZ?
The Grant Map record states: Up to $1,000 state credit (25% of cost, $1,000 max). Confirm the current amount and eligible costs with the administrator.
What audience tags are recorded for Arizona Solar Energy System Tax Credit in Tucson?
The directory record carries audience tags for homeowners. It also carries a no-income-limit tag. These tags do not establish eligibility; confirm the complete current rules with the administrator.
How do I apply for Arizona Solar Energy System Tax Credit in Tucson, AZ?
Confirm the application route directly with Arizona Department of Revenue; use the cited source on this page as a starting point. Confirm any fee or cost with the administrator.
Need a Contractor for This Project?
Browse local listings or request an introduction. The Grant Map does not guarantee licensing, program experience, work quality, or funding.
More ways to save on this project
Rebates and discounts that may reduce project cost. Confirm eligibility and coordination rules before including one in your budget.
Find More Programs in Tucson, AZ
This is one of several kinds of assistance that may be available. Review other programs separately and confirm whether their administrators allow coordination for the same work.
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