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Arizona

Arizona

Incentives/Policies for Renewables & Efficiency

Printable Version
Renewable Energy Production Tax Credit (Personal)   

Last DSIRE Review: 04/19/2013
Program Overview:
State: Arizona
Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass
Applicable Sectors: Commercial
Amount:Wind and Biomass: $0.01/kWh, paid for 10 years
Solar: Varies by year (see below), paid for 10 years
Maximum Incentive:$2 million per year
Eligible System Size:5 MW minimum
Carryover Provisions:Unused credit may be carried forward for 5 years
Program Budget:$20 million per calendar year (includes corporate tax credit)
Start Date:12/31/2010
Expiration Date:12/31/2020
Web Site: http://www.azdor.gov/TaxCredits/RenewableEnergyProductionTaxCredi...
Authority 1:
Date Enacted:
Date Effective:
Expiration Date:
A.R.S. ยง 43-1083.02
5/11/2010
12/31/2010
12/31/2020
Authority 2:
Date Effective:
Program Guidelines
02/05/2013
Summary:
Senate Bill 1254 of 2010 created a tax credit for electricity produced by certain renewable resources. Qualified renewable energy systems installed on or after December 31, 2010, may be eligible for the tax credit based on the amount of electricity produced annually for a 10-year period. The Arizona Department of Revenue (DOR) will accept applications annually between January 2 and January 31 of the year following the year for which the credit is being claimed. The DOR will approve the applications on a first-come, first-served basis until the annual cap of $20 million has been reached. This cap includes both personal and corporate tax credits combined. The DOR will maintain a list of approved applicants. Once a taxpayer is given a position in the list, the taxpayer will remain in that position for the full 10-year period, but the taxpayer must submit a new application every year. If the taxpayer fails to submit a completed application within the one-month window in which the DOR accepts applications, the taxpayer will forfeit the taxpayer's position in the list. If a taxpayer loses position in the list, the taxpayer may apply in the following year for a new position in the list.

The maximum tax credit that can be claimed for a qualified system in any one year is $2 million. The tax credit for wind and biomass* systems equals $0.01 per kilowatt-hour (kWh) for the first 200,000 megawatt-hours (MWh) of electricity produced in a calendar year for a period of ten years. The tax credit for photovoltaics (PV) and solar thermal electric systems varies depending on the year of electricity production according to the following schedule:
  • Year 1: $0.04 per kWh
  • Year 2: $0.04 per kWh
  • Year 3: $0.035 per kWh
  • Year 4: $0.035 per kWh
  • Year 5: $0.03 per kWh
  • Year 6: $0.03 per kWh
  • Year 7: $0.02 per kWh
  • Year 8: $0.02 per kWh
  • Year 9: $0.01 per kWh
  • Year 10: $0.01 per kWh
Application materials can be found at the DOR web site above.


* For the purpose of this tax credit, biomass includes forest-related material, as defined; agricultural-related materials, as defined; animal waste and solid woody waste materials, as defined; crops and trees planted for the purpose of being used to produce energy; landfill gas; waste water treatment gas; and bio-solids.

 
Contact:
  Georganna Meyer
Arizona Department of Revenue
Renewable Energy Production Tax Credit Program
PO Box 25248
Phoenix, AZ 85002
Phone: (602) 716-6927
E-Mail: gmeyer@azdor.gov
Web Site: http://www.revenue.state.az.us/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.