Solar panels have gained a lot of popularity with major sections of the public. However, some questions remain regarding the details of getting solar panels installed and what all of the benefits are to doing so. One question that comes up time and time again is what the tax implications of solar panel installation are.
Tax Incentives for Solar Panels in Arizona
The exciting news for anyone considering getting solar panels installed on their Arizona home is solar panels are not directly taxed by the local government. There are tax incentives that one can enjoy when they set up solar panels on their home. Forbes Home offers some details about the incentives offered by the Arizona state government:
“The Renewable Energy Production Tax Credit is available for Arizona taxpayers who owned a qualified generator that used a qualified energy source to produce energy before January 1, 2021. The program guidelines state that this credit can be claimed on the Arizona Tax Form 310.”
These benefits are IN ADDITION to benefits provided by the federal government. Therefore, there are a lot of incentives offered to homeowners who decide that they want to have solar panels put on their homes. Both Arizona and the federal government are interested in encouraging people to switch to this more environmentally-friendly form of energy production. That is why those who choose to do so can receive tax incentives for their efforts.
Property Tax Concerns
One thing to keep in mind is the fact that installing solar panels on one’s home might increase the value of one’s home. When that happens, it is possible to see an increase in property taxes along with that. Fortunately, that is not the case in Arizona. Residents can take advantage of the Energy Equipment Tax Exemption which provides for a 100 percent tax exemption on the property’s increased value after solar panel installation.
Solar Optimum Is Here To Help
It is important to read the fine print related both to the installation of the solar panels themselves as well as to the local ordinances and other laws. All of this must be examined because the only way to truly know how much one can expect to have to pay in taxes is by examining all of the details of how those laws are written and what impact they will have on you and your property.
At Solar Optimum, we are experts, not just in solar power and equipment, but also the local and national laws surrounding solar energy use. If you have any questions regarding solar panels and tax laws in Maricopa County, contact us today. Our Energy Experts are standing by and ready to assist!