All of Arizona · Tax exemption

Solar and Wind Energy Device Sales Tax Exemption (Arizona TPT)

Run by Arizona Department of Revenue

Arizona doesn't charge state transaction privilege (sales) tax on retail sales of solar energy devices, including solar panels, solar water heaters and small wind generators. The seller must be registered with the Department of Revenue as a solar energy retailer.

Open Checked Oct 27, 2026

Amounts

How much you get

The state transaction privilege tax that would otherwise apply to the sale of the solar or wind energy device is deducted from the seller's tax base, so the saving is that tax on the purchase price. City privilege taxes aren't covered by this state deduction.

Eligibility

Do I qualify?

You need to meet all 3 of these.

  • Your home is in Arizona.

  • The seller takes the deduction, so it only applies when the retailer is registered with the Department of Revenue as a solar energy retailer.

    What to doBuy from a retailer or installer registered with the Arizona Department of Revenue as a solar energy retailer, and ask them to confirm it before you buy. Get a quote from a contractor

  • Applies to solar energy devices as defined in Arizona tax law (systems that collect and transfer solar energy for heating, cooling, electricity or mechanical power, including wind generators), not to ordinary building parts.

Applying

How to apply

The discount comes off at the register.

  1. Choose a seller registered as a solar energy retailer.

    The deduction is taken by the seller on its transaction privilege tax return; there's nothing for the buyer to file.

  2. Check the invoice.

    The state transaction privilege tax shouldn't be charged on the solar energy device itself. City taxes may still apply.

Forms and instructionsA.R.S. 42-5061, Retail classification; definitions (subsection M) · Renewable Energy Generation Incentives - Arizona Governor's Office of Resiliency · A.R.S. 42-5075, Prime contracting classification

Your address

Next steps

Check that it covers your address. Then, if you want, ask for a contractor quote.

FAQ

Questions

How much does Solar and Wind Energy Device Sales Tax Exemption (Arizona TPT) pay?

The state transaction privilege tax that would otherwise apply to the sale of the solar or wind energy device is deducted from the seller's tax base, so the saving is that tax on the purchase price. City privilege taxes aren't covered by this state deduction.

Do I have to use a contractor?

Yes. The seller takes the deduction, so it only applies when the retailer is registered with the Department of Revenue as a solar energy retailer.

Is it still available?

Yes. It was open when we last checked, on October 27, 2026.

References

Sources

This page is built from these official pages, run by the program itself.

  1. A.R.S. 42-5061, Retail classification; definitions (subsection M)azleg.gov · Read Oct 27, 2026 · Re-checked monthly
  2. Renewable Energy Generation Incentives - Arizona Governor's Office of Resiliencyresilient.az.gov · Read Oct 27, 2026 · Re-checked weekly
  3. A.R.S. 42-5075, Prime contracting classificationazleg.gov · Read Oct 27, 2026 · Re-checked monthly

When one of these pages changes, we re-check this page against it.

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