Arizona’s one of the sunniest states in the US– so it’s no surprise that solar energy is becoming a go-to option for renewable energy in the state. Thanks to generous tax exemptions, going solar is easier than ever! Two key programs—the Solar Equipment Sales Tax Exemption and the Solar Property Tax Exemption—make solar power more affordable. Here are some of these incentives and how they can help you save money while contributing to a sustainable future.
If you’re not sold on solar panels yet, check out True Power’s options for residential and commercial solar installations. With these incentives and rebates and True Power’s affordable pricing and expert team, making the switch is easy!
Solar Equipment Sales Tax Exemption
The Solar Equipment Sales Tax Exemption in Arizona eliminates the state sales tax on the purchase of solar energy equipment. This exemption applies to a variety of solar products, including solar panels, inverters, and batteries. Here’s how it works:
- Eligibility: All Arizona homeowners who purchase solar energy equipment for residential use can claim this exemption.This includes complete solar power systems as well as individual parts. You also have to be a registered seller– check out the Arizona Department of Revenue page for more information!
- Automatic Application: The sales tax exemption is automatically applied at the time of purchase, so there’s no need for additional paperwork or applications once you’ve finished the initial registration.
- Huge Savings: By eliminating the state sales tax, this exemption reduces the overall cost of your solar installation. For a solar system costing $20,000, this could mean savings of over $1,100 in sales tax alone.
The Solar Equipment Sales Tax Exemption can greatly lower the upfront cost of going solar, so it’s a more accessible and attractive option for homeowners. This incentive, combined with other programs like the Federal Solar Investment Tax Credit (ITC) and the Arizona State Residential Solar Tax Credit, can drastically reduce your solar investment costs. Plus, it:
- Makes it easier and cheaper to go solar
- Helps you lower your carbon footprint through renewable energy
Solar Property Tax Exemption
The Solar Property Tax Exemption in Arizona exempts the added value of a solar energy system from being included in the assessed value of your property for tax purposes. This means that while your home’s market value increases thanks to the addition of solar panels, your property tax bill doesn’t. Here’s how it works:
How It Works:
- Eligibility: All homeowners who install solar energy systems on their property can claim this exemption. This includes systems installed on both primary and secondary residences.
- Automatic Application: Once your solar installation is finished and properly documented, the added value from the solar system is automatically exempt from property taxes.
- Huge Tax Savings: This exemption stops your property taxes from increasing thanks to the added value of your solar installation, helping you save money over time.
Financial Impact:
The Solar Property Tax Exemption lets you enjoy the increased home value that comes with a solar installation without facing higher property taxes. This makes solar an even more attractive investment, providing financial benefits both immediately and in the long term. (MarketWatch)
Additional Benefits:
- Encourages Property Improvements: By ensuring that property taxes don’t increase with solar installations, this exemption encourages homeowners to make environmentally beneficial improvements.
- Increased Home Value: Solar panels can increase the resale value of your home, making it more attractive to buyers without the downside of higher property taxes.
- Supports Renewable Energy Goals: By making solar more financially viable, this exemption supports Arizona’s renewable energy initiatives and helps reduce the state’s carbon footprint.
If you want more information about solar tax rebates, make sure to check out the Arizona Department of Revenue’s website. And if you’re ready to take the first step towards solar, True Power Solar has got you covered. Call us at (480)-535-4821 for more information!