Incentives & Regulations

States - Arizona

Updated: October 2020
Financial Incentive: Personal Tax Deduction
Type: Residential
Incentive amount: Total cost, exclusive of taxes, interest and other finance charges
Maximum: $500
  • Allows Arizona taxpayers to deduct the cost of converting an existing wood fireplace to a qualifying wood stove, a qualified wood fireplace, or a qualified gas-fired fireplace.
  • The cost to purchase and install all necessary equipment is tax deductible, up to a maximum $500 deduction.
  • Qualifying wood stoves and fireplaces must meet the standards of performance for new wood heaters manufactured after July 1990, or sold after July 1992 pursuant to 40 Code of Federal Regulations part 60, subpart AAA.
Contact Info: Arizona Department of Revenue
P.O. Box 29086
Phoenix, AZ 85038-9086
Phone: (602) 255-3381
Link: and
Arizona state capitol


In 1997, the Arizona Legislature instituted a ban on wood burning fireplaces and some wood burning stoves in all new construction homes. It took effect on January 1, 1999, and applies to all cities and towns inside Arizona counties with populations greater than 1.2 million. Currently, of the stateís 15 counties, only Maricopa County is this large (Pinal Countyís population is approximately 413,312). Municipalities in Maricopa County had until December 31, 1998, to comply. In the year leading up to the banís enforcement, Phoenix, Scottsdale, Tempe, Glendale, Mesa, Gilbert, Paradise Valley and Carefree had all passed ordinances to eliminate wood burning fireplaces in newly built homes.
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