Are you a Maricopa County resident who is wondering what solar incentives are available to you? We’ve got answers! Here’s what you’ll need to know about the Federal Investment Tax Credit, or ITC, that is available to all Maricopa County residents in Arizona.
The Federal Investment Tax Credit
The Federal Solar Investment Tax Credit, better known as ITC, helps all residents of Arizona including Maricopa County. If you install a solar panel system prior to 2032, you’re eligible for a tax credit that is equal to 30% of the cost of your system, including the labor, permits, and equipment. This helps bring down the cost factor and help residents afford eco-friendly and sustainable energy. For example: You install a system that is $20,000 everything included. With the 30% rebate, your tax credit would be $6,000.
There is no maximum limit to this rebate. The credit should be filed with your taxes using an IRS form.
Average Cost of Solar Panels in 2023 in Maricopa County
Average cost of solar panels in Arizona is around $14,030 for smaller sized systems. This is before the incentives and rebates that those in Arizona are eligible for.
What makes up this cost? Well, the system size, the panel type, brand and quality, as well as the permits, installation company, and roofing materials/type. There are several factors that go into cost and cheaper doesn’t mean a better deal if there are cut corners leading to more costs down the road.
Larger systems will of course be more expensive than smaller ones. There are some roofs that are easier to install solar panels on than others. You can discuss your home and your needs with an installation specialist to see where you fall in the average Maricopa County solar panel amounts.
How to Claim the Federal Tax Credit?
After ensuring you are eligible for the tax credit and only after you have completed your solar energy project (do not claim the credit before you are done as you can’t claim items after you apply) you will complete IRS Form 5695. After it has been completed, attach that form to your federal return (either 1040 or 1040NR form) and turn it in with your regular yearly taxes. You can get instructions on how to complete form 5695 from the IRS. Still need help? Contact: Internal Revenue Service (IRS), 1111 Constitution Avenue, N.W., Washington, D.C. 20224, (800) 829-1040.
We’ll Help You Save
The Federal ITC is here to stay until at least 2032. For more information on the tax credit and how to qualify, contact Solar Optimum today. We are currently serving residents in all of Maricopa County, including Buckeye, Carefree, Cave Creek, El Mirage, Goodyear, Litchfield Park, Paradise Valley, Phoenix, Surprise, Wickenburg, and Youngtown.
