Federal and State Solar Tax Benefits

The government has voiced support for renewable energy, and recently has passed legislation that truly gives teeth to their support. Both the federal and Arizona government have taken action to encourage solar electricity.

In February, 2009, the federal government lifted the $2,000 cap on renewable energy tax credits, enabling solar electric systems to qualify for federal tax credits of 30% of the system cost, with no maximum dollar limit. This means that a solar electric system installed by Royal Solar of Arizona qualifies for a federal tax credit of 30% of the system cost, with no cap.

The state of Arizona also offers a tax credit for solar installations, equal to 10% of project cost.  For commercial projects this tax credit is annually capped at $25,000 per location and $50,000 per business.  For residential projects the cap is $1,000 per individual per year, and each residence has a maximum credit.

The state of Arizona also passed a law that solar electric systems will not increase property taxes.

A great place to research both federal and state tax credits: http://www.dsireusa.org/


Royal Covers of Arizona Inc. dba Royal Solar of Arizona is not a tax professional and cannot give tax advice. Your business may not be eligible for these incentives. Before moving forward on a solar project you should consult with your tax professional regarding items such as eligibility, availability, and any other financial implications of a solar electric system installation.