Arizona EV Tax Credits Guide

Residents of Arizona won’t find state-sponsored rebates, credits or other incentives for purchasing an EV or upgrading home energy infrastructure, though some utility companies in Arizona offer incentives for customers who install home EV chargers or a residential solar array. Here’s what you need to know.

As incentive programs shift over time, it is crucial that you research the most current incentives before you buy, or consult a tax specialist to ensure that you qualify for a rebate or tax credit.

No, Arizona does not offer tax credits or rebates to buyers of new EVs. Additionally, the state’s reduced tax program does not apply to EVs purchased on or after December 31, 2022.

No, Arizona does not offer tax credits or rebates on the purchase of used EVs.

There are no statewide credits or incentives for installing a home EV charger. Arizona’s incentives for residential charging stations are run through local utility companies, so customers should check with their local utility for specific benefits and qualifications. Some utilities offer rebates for the purchase and installation of certain home charging equipment, and some utilities provide time-of-use rates for customers to charge EVs at home.

Yes, Arizona offers a tax credit for 25 percent of the total cost of a solar system, up to $1,000. Furthermore, Arizona residents are exempt from state sales tax on the purchase of residential solar panels as well as from property tax increases on their increased home value. Arizona residents should also be sure to check for federal solar incentives.

No. While Arizona requires a special alternative fuel license plate for EVs, it does not require an additional registration fee.

Electric vehicles are exempt from Arizona emissions testing, may use high-occupancy vehicle (carpool) lanes and may park in designated carpool parking spaces.

Consumers who purchase an EV in Arizona may also qualify for the Federal Electric Car Tax Credit of up to $7,500. Arizona residents should also check with their local electric utilities for any additional credits or incentives.