Unlock Significant Savings: How Energy-Efficient Roof Replacements in Maricopa County Can Slash Your Property Tax Bill

Homeowners in Maricopa County face rising property taxes and energy costs, but there’s a powerful solution that addresses both challenges: energy-efficient roof replacements. While many homeowners know about federal tax credits for energy improvements, fewer understand the property tax assessment exemptions available right here in Arizona. These local incentives, combined with federal benefits, can create substantial long-term savings for homeowners who invest in energy-efficient roofing systems.

Arizona’s Energy Equipment Property Tax Exemption: A Game-Changer for Homeowners

Arizona offers a property tax exemption where 100% of the increased value of the property from installing eligible energy systems is exempt, and for property assessment and valuation purposes, the systems are considered to add no value. This means that when you install qualifying energy-efficient roofing components, you won’t pay additional property taxes on the increased home value these improvements create.

Research shows that homes with solar panels are valued 4.1% higher than those without, and homebuyers are willing to pay an additional $15,000 or more for solar-powered homes. But unlike other home upgrades, this increase won’t raise your property taxes in Arizona, thanks to the state’s Energy Equipment Property Tax Exemption. Under this incentive, 100% of the added value from eligible solar energy equipment is excluded from your property’s assessed value. That means you can enjoy the higher resale value of a solar-powered home without having to pay more in annual property taxes.

Qualifying Energy-Efficient Roof Components

Not all roofing materials qualify for these exemptions, but many energy-efficient options do. The eligible renewable technologies include Photovoltaics, Solar Water Heat, Passive Solar Space Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Solar Cooling, Solar Pool Heating, and Daylighting. In addition, other renewable energy technologies such as Wind, Biomass, and Geothermal Electric are eligible. Energy efficient building components are also eligible for the exemption.

For homeowners considering solar roofing options, some solar roofing tiles and solar roofing shingles serve as solar electric collectors while also performing the function of traditional roofing, serving both the functions of solar electric generation and structural support and such items may qualify for the credit. This dual functionality makes solar roofing an particularly attractive option for those seeking both energy savings and property tax benefits.

Federal Tax Credits: Stacking Savings for Maximum Impact

Arizona homeowners can combine state property tax exemptions with federal energy tax credits for maximum savings. The credit is allowed for qualifying property placed in service on or after Jan. 1, 2023, and before December 31, 2025. $1,200 for energy efficient property costs and certain energy efficient home improvements, with limits on exterior doors ($250 per door and $500 total), exterior windows and skylights ($600) and home energy audits ($150) $2,000 per year for qualified heat pumps, water heaters, biomass stoves or biomass boilers. The credit has no lifetime dollar limit. You can claim the maximum annual credit every year that you make eligible improvements or install energy efficient property until 2025.

For solar installations specifically, Residential Clean Energy Credit, formerly known as the federal investment tax credit (ITC), can reduce your solar panel system’s cost by 30%. Your entire system qualifies for this incentive, including equipment, labor, permitting, and sales tax.

Application Process and Timeline

To take advantage of Arizona’s property tax exemption, homeowners must be proactive. Frequency: Annual exemption for the system’s lifetime. How to apply: Submit documentation of costs and equipment to the county assessor no less than 6 months prior to notice of full cash value being issued

The timing is crucial because the federal solar tax credit will no longer be available for systems installed after December 31, 2025, so you have to go solar this year to claim it. Remember: Your system must be installed by December 31, 2025 to qualify for this credit.

Additional Arizona Benefits

Beyond property tax exemptions, Arizona offers additional incentives for energy-efficient improvements. If you live in AZ, you’ll get a credit worth 25% of your solar panel system cost, up to $1,000, towards your AZ state income tax bill. The system can be installed on either your primary or secondary residence, but you can only claim $1,000 per year. If you don’t have a big enough tax bill to claim the full credit, you can rollover unused credit for up to five years.

In addition to the great rebates and incentives above, Arizona also offers tax exemptions for solar panel systems. The solar sales tax exemption ensures that you won’t have to pay a sales tax on your system, while the solar property tax exemption means you don’t need to pay a higher property tax for adding solar panels to your house.

Working with Professional Contractors

Given the complexity of these incentives and the importance of proper installation for qualification, working with experienced local contractors is essential. Companies like Roofing All Stars, which serves the Phoenix and Maricopa County area, understand both the technical requirements and the paperwork necessary to ensure homeowners receive all available benefits. When considering a roof replacement Maricopa County homeowners should choose contractors familiar with energy-efficient systems and local incentive programs.

Roofing All Stars LLC is a market leader in roofing and building services, with a local history serving Phoenix, AZ and the surrounding areas. Roofing All Stars is a full-service residential roofing contractor serving Phoenix, Chandler, Gilbert and the surrounding areas. Our team of roofers bring a wealth of experience to every job and are backed by All Stars commitment to excellent service and workmanship.

The Bottom Line: Act Now for Maximum Savings

The combination of federal tax credits, state property tax exemptions, and sales tax exemptions creates a compelling financial case for energy-efficient roof replacements in Maricopa County. However, with federal incentives set to expire at the end of 2025, homeowners have a limited window to maximize these benefits.

By investing in qualifying energy-efficient roofing systems now, Maricopa County homeowners can enjoy reduced energy bills, increased property values without increased property taxes, and substantial upfront tax credits. The key is understanding the requirements, working with qualified contractors, and acting before these valuable incentives expire.

For homeowners ready to explore these opportunities, consulting with both tax professionals and experienced roofing contractors familiar with energy-efficient systems will ensure you maximize every available benefit while improving your home’s performance and value.