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Can I claim the Arizona solar energy credit with used equipment?

Hi there!

 

I'm looking at installing a solar system for my home, and doing so with used or second hand equipment would cost considerably less than new. I briefly researched online to see if my equipment MUST be new to get the Arizona solar credit but was not finding an answer one way or another.

 

My Question: if I purchase used equipment, would that still qualify for the state and federal solar tax credits?

 

Also in addition: I'm thinking of installing a solar gazebo in my backyard and connecting it to the grid to power my home ("grid-tie solar") instead of installing the panels on my home's roof. Would building the gazebo structure also be covered under the tax credits as it supports the solar equipment (like how racks support solar on a roof) or only the solar equipment itself?

 

Thanks for your help!

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1 Reply
Carl
Level 15

Can I claim the Arizona solar energy credit with used equipment?

On the federal side, from what I read at the government website energy.gov in the third column, fourth bullet down:
The solar PV system is new or being used for the first time. The credit can only be claimed on the “original installation” of the solar equipment.

So my take is that you get no credit on the federal tax return.

A search of AZ websites makes no mention of the equipment being used or new. It only states that the equipment must be "in service" in the tax year you are claiming the state credit, and there's a few other requirements about minimum energy production that must be met or exceeded to qualify for the state credit. It looks like some fairly good information for the state credit at https://www.flagstaff.az.gov/DocumentCenter/View/13559/Renewable-Energy-and-Energy-Efficiency-Rebate...

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