The final amount on form 5695 on the federal return flows to line 5a on Schedule 3 (1040) as a nonrefundable credit. It is not part of the federal Schedule A, which is Itemized Deductions. Credits don't belong on Schedule A.
This being the case, the 25C credit does not affect Arizona income. However, if you see some late breaking news, please let us know about it.
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