Incentives: How do the tax credits work?
Answer
Tax credits are applied to the final tax bill. If you owned $5,000 in taxes and had a $1,000 tax credit, you would owe only $4,000. If your withholding exceeded your tax liability, the refund will be increased by the tax credit amount. The Arizona tax credit is 25% of the system cost with a maximum credit of $1,000. The federal tax credit is 30% of the net system cost. Net system cost is the contract amount less any utility incentive.