Property Tax Assessment for Renewable Energy Equipment (Arizona)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Arizona

Name Property Tax Assessment for Renewable Energy Equipment
Incentive Type Property Tax Incentive
Applicable Sector Utility, Other entities that generate, transmit or distribute -- but do not use -- eligible electricity
Eligible Technologies Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydroelectric
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount Renewable-energy equipment assessed at 20% of its depreciated cost






Equipment Requirements Energy must not be used on-site

Expiration Date 2040-12-31

















Program Administrator Arizona Department of Revenue

Date added to DSIRE 2008-06-24
Last DSIRE Review 2014-06-18



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

For the purpose of determining property tax, renewable energy equipment owned by utilities and other entities operating in Arizona is assessed at 20% of the "taxable original cost" after deducting depreciation. "Renewable energy equipment" is defined as "electric generation facilities, electric transmission, electric distribution, gas distribution or combination gas and electric transmission and distribution and transmission and distribution cooperative property that is located in this state, that is used or useful for the generation, storage, transmission or distribution of electric power, energy or fuel derived from solar, wind or other nonpetroleum renewable sources not intended for self-consumption, including materials and supplies and construction work in progress, but excluding licensed vehicles and property valued under sections 42-14154 and 42-14156."

HB 2403 of 2014 clarified that depreciation should be determined using straight-line depreciation over the useful life of the equipment. The taxable original cost equals the original cost of the equipment, reduced by any investment tax credits, production tax credits or grants in lieu of investment tax credits.


Incentive Contact

Contact Name Taxpayer Assistance
Department Arizona Department of Revenue
Division Property Tax
Address 1600 W. Monroe

Place Phoenix, Arizona
Zip/Postal Code 85007
Phone (602) 716-6843



Website http://www.revenue.state.az.us/
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: A.R.S. § 42-14155

Date Enacted 4/10/2000 (subsequently amended)
Expiration Date 2040-12-31

Authority 2: HB 2403

Date Enacted 2014-04-30


















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"