Arizona Form 310 is used to claim the Solar Energy Credit for qualifying solar energy devices installed in a dwelling unit located in Arizona that is used as the taxpayer’s residence.
Eligibility Requirements
- The solar energy device must be purchased. A leased system or a system installed under a Power Purchase Agreement (PPA) does not qualify for the credit.
- The solar energy device must be installed in a dwelling unit located in Arizona that is used as the taxpayer’s residence.
- A solar energy device is a system or series of mechanisms which collect and transfer solar generated energy and which are designed primarily to:
- Provide heating,
- Provide cooling,
- Produce electrical power,
- Produce mechanical power,
- Provide solar daylighting, or
- Provide any combination of the above by collecting and transferring solar-generated energy through active or passive means
- If the system is installed by a contractor, the installer must provide the required certification that the device complies with Arizona requirements, when applicable.
- If you designed and installed the system yourself, you will not receive a compliance certificate; however, the system must still meet Arizona’s solar energy device requirements.
Credit
- The credit is generally 25% of the cost of the solar energy device, up to a maximum credit of $1,000.
- Unused credit may generally be carried forward for up to five consecutive taxable years.
- The device must be installed in a dwelling unit located in Arizona that is used as the taxpayer's residence.
How to Claim the Credit
- Complete Form 310 to calculate the allowable Solar Energy Credit.
- Enter the credit from Form 310, line 18, on Form 301, Part 1, line 3, column (c).
- Attach Form 310 to your Arizona income tax return when claiming the credit.
Source:
Arizona Form 310 Instructions (Solar Energy Credit)
Arizona Form 301 Instructions (Individual Income Tax Credits)
Disclaimer: Always verify details with the official Arizona Department of Revenue forms and instructions. Tax rules may change, and individual circumstances may require professional advice from a CPA or tax attorney.