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Renewable Energy Production Tax Credit (Corporate)

Eligibility 
Commercial
Savings Category 
Photovoltaics
Maximum Rebate 

2 million per year

Program Info
Start Date 

12/31/2010

Expiration Date 

12/31/2020

State 
Arizona
Program Type 
Corporate Tax Credit
Rebate Amount 

Wind and Biomass: 0.01/kWh, paid for 10 years
Solar: Varies by year (see below), paid for 10 years

Provider 
Arizona Department of Revenue

'''''Note: this tax credit is only available for systems installed on or after December 31, 2010, and before January 1, 2021.'''''

[http://www.azleg.gov/FormatDocument.asp?inDoc=/legtext/49leg/2r/bills/sb... Senate Bill 1254] of 2010 created a tax credit for electricity produced by certain renewable resources. Qualified renewable energy systems installed on or after December 31, 2010, may be eligible for the tax credit based on the amount of electricity produced annually for a 10-year period. The Arizona Department of Revenue (DOR) will accept applications annually between January 2 and January 31 of the year following the year for which the credit is being claimed. The DOR will approve the applications on a first-come, first-served basis until the annual cap of $20 million has been reached. This cap includes both personal and corporate tax credits combined. The DOR will maintain a list of approved applicants. Once a taxpayer is given a position in the list, the taxpayer will remain in that position for the full 10-year period, but the taxpayer must submit a new application every year. If the taxpayer fails to submit a completed application within the one-month window in which the DOR accepts applications, the taxpayer will forfeit the taxpayer's position in the list. If a taxpayer loses position in the list, the taxpayer may apply in the following year for a new position in the list.

The maximum tax credit that can be claimed for a qualified system in any one year is $2 million. The tax credit for wind and biomass* systems equals $0.01 per kilowatt-hour (kWh) for the first 200,000 megawatt-hours (MWh) of electricity produced in a calendar year for a period of ten years. The tax credit for photovoltaics (PV) and solar thermal electric systems varies depending on the year of electricity production according to the following schedule:
* Year 1: $0.04 per kWh
* Year 2: $0.04 per kWh
* Year 3: $0.035 per kWh
* Year 4: $0.035 per kWh
* Year 5: $0.03 per kWh
* Year 6: $0.03 per kWh
* Year 7: $0.02 per kWh
* Year 8: $0.02 per kWh
* Year 9: $0.01 per kWh
* Year 10: $0.01 per kWh
The DOR will be developing rules and application materials to administer this tax credit.

*'' For the purpose of this tax credit, biomass includes forest-related material, as defined; agricultural-related materials, as defined; animal waste and solid woody waste materials, as defined; crops and trees planted for the purpose of being used to produce energy; landfill gas; waste water treatment gas; and bio-solids.''