IRS Clarifies Solar Tax Credits for Arizona Residents

Going “green” with solar power is a great way to ease your impact on the environment. And there are quite a few tax credits for Arizona residents that can ease the impact of a solar energy system on your wallet, too. The trouble is that these tax credits can be difficult to understand. One of the biggest incentives is a 30% federal tax credit for homeowners; the IRS issued an opinion recently on how Arizona residents should figure this credit so that they don’t run into trouble with the IRS.

The basic confusion over the tax credit was this; Arizona residents are entitled to incentives from utility companies and a $1000 credit from the state of Arizona in addition to the federal tax credit. Tax experts were not in agreement over whether the 30% federal credit should be taken before the other credits or after – a difference of opinion that could mean thousands of dollars in the taxpayer’s pocket or an uncomfortable tax audit from the IRS.

American Solar Electric, Inc of Scottsdale, Arizona, has been working hard to get an answer from the IRS on behalf of one of their clients. In a “private-letter ruling” the IRS responded that Arizona residents may take the tax credit before the utility rebate, but that they would need to pay federal and state taxes on any rebates. Customers who have installed a solar system and want to take advantage of rebates and credits are advised to consult a qualified tax professional in order to be sure they are doing the right thing.

At The Pew Law Center, PLLC, we understand that if you do run into tax problems with the IRS, it can be overwhelming.  Whether you owe back taxes, haven’t filed taxes for several years, or have received an audit or wage garnishment notice from the IRS, the attorneys at The Pew Law Center, PLLC can help you or your business with these and any other federal and state tax problems.

We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona work through tough tax problems or file for bankruptcy every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing tax problems. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.