MayaD
Expert Alumni

State tax filing

Every resident in Arizona who installs solar panels gets a State Tax Credit of 25% of the total system cost, up to $1,000, to be used toward State income taxes.

The credit is a non-refundable credit. A nonrefundable credit  means that the credit can't be used to increase your tax refund or to create a tax refund when you wouldn't have already had one. The credit can only reduce your tax liability to zero. 

If you can't claim the credit this year, you can carry it forward to future years.

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