AZ Tax Forms

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Where can I find my home energy efficiency tax credit (AZ 25C) on my state tax return? It keeps saying it's federal form 5695 but I can't see where it is applied to my state tax return.

Thanks.

BillM223

Level 15

I don't see where it is on your state return either. I think this Arizona webpage is referring to the federal tax credit, not to an Arizona tax credit.

I have looked at solar energy credits and solar generation credits, but these are not as broad as "improving the energy efficiency of an existing home, such as home energy audits, doors, windows, insulation, and heating and cooling equipment".

I have searched the state forms and the instructions, and I don't think there is such a credit in Arizona.

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Kurtis86305Author

Level 2

It is a bit confusing. The Arizona tax credit for home energy improvements is 25C and is based off of the 5695 federal form for logging the energy improvement. I don't see where it lands on the AZ 140 form, but it is part of the federal itemized schedule A (I think), which is used by AZ to determine final taxable income (AGI). I am not sure if this is one of the issues being held up by our Governor, so I will wait as long as I can. If I find anything else out, I will let you know.

Thanks for the response.

BillM223

Level 15

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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