ADOR: Homeowners with solar energy devices eligible for income tax credit

PHOENIX, Ariz. (KYMA, KECY) - The Arizona Department of Revenue (ADOR) is advising homeowners who installed solar energy devices in their homes throughout 2021 to submit Forms 310 and 301 to receive an income tax credit.

Form 310 is Credit for Solar Energy Devices and Form 301 is Nonrefundable Individual Tax Credits and Recapture.

ADOR says solar energy gathers and transfers solar-generated energy that is used to:

• Provide heating,
• Provide cooling,
• Produce electrical power,
• Produce mechanical power,
• Provide solar daylighting,
• Provide any combination of the above by means of collecting and transferring solar generated energy into such uses either by active or passive means, including wind generator systems that produce electricity.

An Arizona law offers a solar energy credit for purchasing and installing a solar energy device at 25% percent of the cost which includes installation or $1,000.

If a second device gets installed sometime later, the accumulative credit must not exceed $1,00 for the same household.

This Renewable Production tax credit is for a suitable energy generator with at least five megawatts generating power and isn't for a residential application.

According to ADOR, there isn't a preapproval needed for an individual income tax credit for a residential Solar Energy Device tax credit that is declared on Form 310.

Read Form 310 instructions for qualifications and how to file correctly to claim the credit.