Rebate Guide — Arizona
Arizona has one of the strongest greywater incentive structures of any state, combining a significant state income tax credit with local utility rebates. The combination of the 25% state tax credit (up to $1,000) and Tucson Water's rebate (up to $200) means Arizona homeowners can often recover the full cost of a DIY installation — and recover a meaningful portion of a professionally installed system.
| Program | Amount | Eligibility | How to Apply |
|---|---|---|---|
| Arizona State Income Tax Credit — A.R.S. §43-1090 | 25% of system cost, up to $1,000 | All Arizona state taxpayers with a qualifying greywater installation | File Arizona Form 310 with your state income tax return. No pre-approval needed. Keep all receipts. Unused credit carries forward 5 years. |
| Tucson Water Rebate | Up to $200 | Tucson Water customers (Tucson utility service area) | Register at tucsonaz.gov/water BEFORE installation. Free DIY kit also available. Submit receipts + photos within 90 days. |
| SNWA (Las Vegas area — Nevada, not AZ) | Varies | Note: SNWA serves Clark County, Nevada — not Arizona | See Nevada rebate page if you're in the Las Vegas metro. |
Most Arizona programs require pre-installation registration or approval. Do not purchase materials until you've confirmed program requirements with your utility.
In many cases you can stack multiple incentives — for example, a local utility rebate AND a state tax credit (where available). Apply to all programs you qualify for simultaneously.
File Arizona Form 310 ("Credit for Water Conservation Systems") with your state tax return. Calculate 25% of your total system cost (materials + any labor). Enter on Form 310. The credit reduces your AZ tax liability dollar-for-dollar. Maximum $1,000 credit ($4,000 in eligible costs). Any unused credit carries forward up to 5 years.
Yes — they are separate programs. The tax credit is from the state; the rebate is from the city utility. Both can be claimed on the same installation. The rebate doesn't reduce the eligible cost basis for the tax credit calculation.
Phoenix Water Services does not have an active residential greywater rebate program as of 2025. The Arizona state tax credit is available to Phoenix homeowners regardless. Check phoenixwaterservices.com for any new programs — they have announced plans to expand conservation rebates.
See the full Arizona greywater permit rules and installation guide:
Arizona State Guide →