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Commercial/Industrial Solar Energy Tax Credit Program

The primary goal of the Commercial/Industrial Solar Energy Tax Credit Program is to stimulate the production and use of solar energy in commercial and industrial applications by subsidizing the initial cost of solar energy devices. The program achieves this goal by providing an Arizona income tax credit for the installation of solar energy devices in Arizona business facilities.


Tax Credit Provisions & Limitations
An eligible applicant is a business that installs a solar energy device at its Arizona facility. The tax credit is equal to 10% of the installed cost of the solar energy device not to exceed $25,000 in credits for one building in a single tax year and $50,000 total credits per business per tax year. Tax credits can be used to offset Arizona income tax liability; any unused credit amounts can be carried forward for a five-year period. 

Commerce cannot certify tax credits under this program that exceed $1,000,000 in any calendar year. Therefore, tax credits are authorized on a first come, first served basis, according to a priority placement number issued by Commerce based on the date of receipt of a completion report. Download the solar energy allocation table to view the tax credit amount remaining in the current calendar year.


General Information

Legislative Information NEW!

  • Solar Tax Credit Statutes: A.R.S. §41-1510.01
  • During the 2007 legislative session House Bill 2491 was introduced, proposing amendments to the tax credit program. On May 4th the Governor signed 2491 into law. The provisions of the amendment become effective in September 2007. Commerce will soon begin implementation of the amendment and revised materials will be published in September 2007. To view the amendment, please click here HB2491.
  • Summary of Legislative Changes from 2007 Legislative Session.


Application Process for Initial Certification
A business that plans on installing or has installed a solar energy device at an Arizona facility may obtain initial certification through the following process:

  • The business applies for initial certification by completing an Application for Initial Certification of a Solar Energy Device and submit it to Commerce.
  • If a solar energy device has been installed and is operational the business may also submit a Completion Report for a Solar Energy Tax Credit Certificate concurrent with submittal of an application.
  • Upon receipt of an application Commerce will assign a unique identifying number to each solar energy device.
  • Within 30 days of receipt of a complete application, Commerce will notify the business of initial certification or denial.
  • If a business receives initial certification, Commerce will issue a Letter of Initial Certification to the business and transmit the certification information to Arizona Department of Revenue (Revenue). Initial certification does not guarantee receipt of tax credits under this program because initial certification is issued before Commerce determines final eligibility.

Completion Report Process for a Credit Certificate
  • Once a solar energy device is installed and operational a business can request a credit certificate by submitting a Completion Report for a Solar Energy Tax Credit Certificate.
  • After receipt of a completion report Commerce will assign a priority placement number to each solar energy device.
  • If a business is eligible, Commerce will issue a Credit Certificate to the business and transmit the certification information to Revenue.


Claiming the Tax Credits
After a business has received a credit certificate from Commerce, it may claim the certified tax credits with Revenue. The tax credit must be claimed by the certified business on an Arizona income tax return along with Revenue Form 336 for the tax year identified on the credit certificate, which will be the year the completion report is received by Commerce. For more information and to download Revenue’s forms, visit http://www.azdor.gov/


Please Note: The commercial/industrial tax credit program is administered through Commerce. However, the TPT and property tax incentives provided by the bill are administered through Revenue. For more information and to download Revenue’s forms, visit http://www.azdor.gov/

Looking for the Residential Solar Tax Credit?
A solar energy device installed at a residential location may be eligible for a tax credit
equal to 25% of the total installed cost of the device not to exceed $1000 under A.R.S.
§43-1083. This credit is administered solely by Revenue. Click here to view brochure.

Email Updates
Commerce will soon begin the process of drafting rules for the Commercial Solar Energy Tax Credit Program and will seek public comment. As soon as rules are adopted, Commerce will place an update on this website and will notify businesses and others who have requested information. If you have not yet placed your e-mail address on our list, please click here to send an e-mail requesting notification. Please be sure to identify solar energy as the program for which you would like notification.


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