Arizona is known to be the sunniest state in the USA and has the best conditions for solar panels to produce at maximum efficiency. There us a reason why you are seeing more and more solar panels on rooftops of homes and business. This is because both Federal and to the state of AZ has a great solar tax incentives for homeowners.

There is a Federal ITC which stands for "Investment Tax Credit" is currently set at 26% available for purchased home solar systems installed by December 31, 2022. Originally, Back in December 2020, Congress extended the 26% federal tax credit for solar power until the end of 2022. With the original phase-out schedule, the solar tax credit was decreasing to 22% in 2021, but an extension for homeowners was granted for the 26% ITC until 2024!
AZ Solar Tax Credit

What gives Arizona homeowners a greater advantage than most states to own solar is that there is an exclusive AZ solar tax credit. The Residential Arizona Solar Tax Credit reimburses you 25 percent of the cost of your solar panels, up to $1,000, right off of your personal income tax in the year you install the system.
Equipment and property tax exemptions
Thanks to the Solar Equipment Sales Tax Exemption, you are free from the burden of any Arizona solar tax. Therefore, you aren’t required to pay any sales tax on the purchase of your solar system. Similarly, the Energy Equipment Property Tax Exemption means you won’t have to pay any additional property taxes on the value you are adding to your home by investing in solar panels.
Arizona tax credit forms and instructions for all recent years can be obtained at:
https://www.azdor.gov/Forms/Credits.aspx
Tax Credit Eligibility
According to the U.S. Department of Energy, to qualify for the solar federal tax credit, you must meet all of the following requirements:
You must own your home (renters are excluded, unfortunately).
The solar panel system must be