Rainwater Harvesting for Drylands and Beyond by Brad Lancaster

Arizona has some great financial incentives for water harvesting, which other states could replicate. But more folks need to take advantage of them.

The State of Arizona will give Arizona taxpayers a one-time tax credit for a “water conservation system” (defined as a system to harvest residential rainwater and/or greywater). The credit is for 25% of the cost of the system (up to a maximum of $1,000).
Builders are eligible for an income tax credit of up to $200 per residence unit constructed with a water conservation system installed.

The credit is retroactive to January 1, 2007. So, anyone who has purchased water harvesting systems from January 1, 2007 onward can apply for the AZ tax credits until the annual amount allotted to the credit has been filled. Note: it is not too late to apply for any installations in past years done after Jan. 1, 2007 when the program began – as long as you do so before the program ends in 2012.

There is $250,000 per year allocated for these tax credits through 2012. Once all funds are used for the year you need to apply for funds in the next year, so APPLY NOW if you qualify.

More people need to apply so that these funds are both utilized and renewed after 2012. A large portion of the 2007 funds were never used, and as of early November 2008 $205,000 of the 2008 credit funds still remained in the account.

You can apply for this tax credit at:
http://www.azdor.gov/Refunds%20and%20Credits/graywaterchoicesmenu.
Specific questions about the tax credit can be directed to Rosemary Soto of AZDOR at (602) 716-6595

For more water-harvesting financial incentives around the U.S. and the world see: http://www.harvestingrainwater.com/rainwater-harvesting-inforesources/water-harvesting-tax-credits/

For water-harvesting ordinances promoting water harvesting in Tucson, Arizona (such as mandating greywater-harvesting stubouts in all new home construction, and commerical developments providing at least 50% of their irrigation needs with harvested rainwater) see:
http://www.harvestingrainwater.com/rainwater-harvesting-inforesources/rainwater-harvesting-ordinances/