Renewable Energy Production Tax Credit (Corporate) (Arizona)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Arizona

Name Renewable Energy Production Tax Credit (Corporate)
Incentive Type Corporate Tax Credit
Applicable Sector Commercial
Eligible Technologies Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount Wind and Biomass: 0.01/kWh, paid for 10 years

Solar: Varies by year (see below), paid for 10 years

Carryover Provisions Unused credit may be carried forward for 5 years

Eligible System Size 5 MW minimum

Start Date 2010-12-31
Expiration Date 2020-12-31

Maximum Incentive 2 million per year

Program Budget $20 million per calendar year (includes personal tax credit)

Program Administrator Arizona Department of Revenue

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


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: $0.015 per kWh
  • Year 10: $0.01 per kWh

Application materials can be found at the DOR web site above.

* 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.

Incentive Contact

Contact Name Georganna Meyer
Department Arizona Department of Revenue
Division Renewable Energy Production Tax Credit Program
Address PO Box 25248
Place Phoenix, Arizona
Zip/Postal Code 85002
Phone (602) 716-6927


Authorities (Please contact the if there are any file problems.)

Authority 1: A.R.S. § 43-1083.02
Date Effective 2010-12-31
Date Enacted 2010-05-11
Expiration Date 2020-12-31
Authority 2: Program Guidelines
Date Effective 2013-02-05

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


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