Strike everything after the
enacting clause and insert:
"Section 1. Section 30-221, Arizona Revised Statutes, is amended to read:
START_STATUTE30-221. Authority to issue revenue bonds
A. When
the authority finds other financing methods or procedure inadvisable,
inadequate or insufficient to acquire or construct transmission lines,
projects, works or facilities for the
purposes of this chapter, it may independently or in conjunction
with any other optional or alternative plans provided in this chapter issue
bonds as provided by this article. END_STATUTE
Sec. 2. Section 30-223, Arizona Revised
Statutes, is amended to read:
START_STATUTE30-223. Scope of requisition; filing; hearings
and notice
A. Requisitions may request approval of a bond issue
under this article
comprehending an entire plan or system or for construction or acquisition of
any single or joint project, section, station or other facility of any related
electric system or plan proposed for ultimate integration and
completion. Requisitions or documents and records in connection with
any present or anticipated bond requisition may be filed simultaneously or
serially. All pertinent records and documents shall be filed not less
than ten days previous to the time set for the hearing. Prehearings
respecting any particular document, feature, incidental matter or any separable
part or portion of any requisition may be held by the board on ten days
previous written notice unless waived in writing, when the holding of
prehearings is deemed by the state certification board to be conducive to
expediting final hearing, and a decision as to the issues presented may
thereupon be rendered. Upon permission of the state certification
board, any documents, records, exhibits or other papers may be amended and
refiled at least ten days prior to the time set for final hearing.
B. Requisitions shall be filed with the secretary of
the state certification board and the board chairman shall at the earliest
practical date fix a time and place not less than twenty nor more than thirty
days thereafter for a hearing upon the requisition. Notice of the
time and place fixed for the hearing shall be published twice in some newspaper
of general circulation in the state unless the requisition filed is
anticipatory only and does not seek approval of any present proposed bond
issue. Unless waived in writing, notice of the filing of preliminary
or anticipatory requisitions shall be given by the authority to any qualified
parties thereby directly involved, by registered mail, not less than ten days
prior to any hearing thereon.
C. At the time and place fixed for the hearing, the
state certification board shall proceed to an examination and determination of
the matters and questions involved. Hearings may be recessed,
adjourned or continued from time to time as the board may order. END_STATUTE
Sec. 3. Section 30-227, Arizona Revised
Statutes, is amended to read:
START_STATUTE30-227. Additional provisions of bonds;
certification by attorney general; sale
A. The authority may provide for reimbursement to
the holder of all expenses of litigation and attorney fees incurred in
collection of the bonds issued under
this article in the event of default, and may provide for and fix
the powers and duties of a trustee if necessary to enforce
collection. Bond resolutions, agreements and bonds may be in such
form and contain such other conditions and terms as the authority deems
appropriate or necessary to make the bonds fully salable and marketable.
B. The authority may provide that any holder of
bonds, or a trustee designated by the authority at the time of issuing the
bonds, may upon proper showing secure by mandamus, or other proper proceedings,
an order of court requiring the authority, subject to the provisions of
contracts with purchasers of electrical energy from the authority then in
effect, to fix and collect rates and charges which will produce revenues and
income permitting the setting up of adequate yearly reserves with which to meet
future payments in accordance with the terms of the bond.
C. All bonds issued by the authority under this article and agreements of the
authority with respect thereto shall be subject to the provisions of this
chapter, and no bond or agreement shall contain any provisions in conflict with
this chapter. No amendment of this chapter shall ever diminish or
impair the remedy and rights of the bondholder.
D. The bonds shall be signed by the chairman or vice‑chairman
and the secretary of authority in office at the date of signing, and shall be
valid obligations of the authority although before delivery or sale the persons
whose signatures appear on the bonds have ceased to be members of the
authority.
E. The validity of the bonds shall not be dependent
on or affected by the legality of any proceeding relating to the acquisition,
construction, improvement or extension of a project for which the bonds are
issued. The bonds shall recite that they are regularly issued
pursuant to this chapter and such recital shall be prima facie evidence of
their legality and validity.
F. Before delivery or sale the authority may submit
the bonds to the attorney general of the state, and he who
shall examine them and inquire into the legality of all proceedings bearing
upon the validity of the bonds. If satisfied that they are legally
issued, he the attorney general shall certify in
substance on the back of each bond that it is issued in accordance with the
constitution and laws of this state.
G. Bonds so issued may be sold if and when the money
is needed for the purposes for which they were issued. Pending the
preparation or execution of definite bonds, interim receipts or certificates or
temporary bonds may be delivered to the purchaser or purchasers of bonds. END_STATUTE
Sec. 4. Title
30, Arizona Revised Statutes, is amended by adding chapter 2, to read:
CHAPTER 2
SUSTAINABLE ENERGY DEVELOPMENT
ARTICLE 1. GENERAL PROVISIONS
START_STATUTE30-401. Definitions
In this chapter, unless
the context otherwise requires:
1. "Advanced
nuclear process" means electrical generation using generation III or later
nuclear reactor design criteria.
2. "Authority"
means the Arizona power authority.
3. "Biomass"
means raw or processed plant-derived organic matter available on a renewable
basis, but not including painted, treated or pressurized wood, wood contaminated
with plastics or metals, tires, recyclable postconsumer wastepaper or municipal
solid waste.
4. "Commission"
means the Arizona power authority commission.
5. "Facilities"
means electric generation and transmission facilities and any related property,
including real property.
6. "Obligations"
means bonds, notes, bond anticipation notes, commercial paper or other
evidences of indebtedness or lease, installment purchase or other agreements or
purchasing programs or certificates of participation.
7. "Sustainable
energy" means electrical power generated from solar, wind, biomass,
geothermal and advanced nuclear processes.
8. "Sustainable
energy generation facility" means a facility that generates at least two
hundred fifty megawatts of sustainable energy that is transmitted to a grid
connection with a public or private electric transmission or distribution
utility system pursuant to a power purchase agreement.
9. "Transmission
facility" means real and personal property and improvements used to transmit
electricity between a sustainable energy generation facility and the first
connection with a public or private transmission grid. END_STATUTE
START_STATUTE30-402. Purpose and powers
A. The Arizona power authority shall administer this chapter to support and expand the Arizona energy economy by providing financing and incentives for the development of
sustainable energy generation and transmission facilities and related supporting
infrastructure.
B. The
authority, through its commission, may:
1. Issue
bonds and other obligations pursuant to this chapter.
2. Issue
grant and revenue anticipation notes pursuant to title 35, chapter 3, article
3.2 or 3.3.
3. Provide
financial assistance for the construction, development, acquisition, operation
and maintenance of sustainable energy generation and transmission facilities
and related infrastructure in this state.
4. Investigate,
plan, prioritize and establish financing plans for the generation and
transmission of sustainable energy.
5. Apply
for, accept and administer grants and other financial assistance from the
United States government and from other public and private sources.
6. Contract
for the services of outside legal, financial and fiscal advisors, agents,
consultants and aides that are reasonably necessary or desirable to allow the
authority to adequately perform its duties under this chapter.
7. Contract
and incur obligations as reasonably necessary or desirable within the general
scope of authority activities and operations to allow the authority to
adequately perform its duties under this chapter.
8. Assess
financial assistance origination fees, annual fees and other fees for
administering this chapter and the monies administered by the authority
pursuant to this chapter. Any fees collected pursuant to this
paragraph constitute governmental revenue and may be used for any purpose
consistent with the mission and objectives of the authority under this chapter.
9. Adopt
rules governing the application for and awarding of financing and other
financial assistance from the sustainable energy development fund. Rules
adopted pursuant to this section are exempt from title 41, chapter 6, except
that the authority shall:
(a) Submit
the rules for publication, and the secretary of state shall publish the rules
in the Arizona administrative register.
(b) Provide
thirty days for interested persons to comment on the proposed rules before
adoption and after publication.
10. Enter
into agreements with any person or entity for the sale or purchase of power and
energy and enter into agreements with any person or entity for the transmission
of power and energy, in each case in and outside of this state.
11. enter
into contracts with any person or entity for the management and operation of
its projects.
12. Own
projects by itself or jointly with other owners and develop operational and
joint ownership protocols.
13. Authorize
municipal corporations and existing or new power authorities to enter into
contracts with the authority to purchase electricity from the authority and
make payments for electricity unconditionally whether the electricity is
delivered or whether the particular project is completed, operable or
operating, and pay obligations of another municipal corporation if that
municipal corporation defaults in making payments to the authority as provided
in the defaulting municipal corporation's agreement with the authority.
14. Finance
a project in which the sale of electricity will be to entities outside this
state, if the authority finds that the project will also support an ample
supply of low-cost electricity to citizens of this state.
15. Pledge
the revenues under the power purchase agreements, state and federal monies and
grants and related resources to a financing program.
16. Develop
minimum credit guidelines for power purchase agreements to ensure adequate
financing capacity and enhanced financing efficiency and develop step-up
provisions as credit backstops in power purchase agreements.
17. levy and
override fees or charges in the power purchase agreements to partially offset
the operation and maintenance cost of the authority. END_STATUTE
START_STATUTE30-403. Annual audit and report
A. The authority shall cause an audit to be made
of any fund administered by the authority under this chapter. The
audit shall be conducted by a certified public accountant within one hundred
twenty days after the end of the fiscal year. The authority shall immediately
file a certified copy of the audit with the auditor general.
B. The
auditor general may make any further audits and examinations as necessary and
may take appropriate action relating to the audit or examination pursuant to
title 41, chapter 7, article 10.1. If the auditor general takes no
official action within twenty days after the audit is filed, the audit is
considered to be sufficient.
C. The
authority shall pay any fees and costs of the certified public accountant and
auditor general under this section from the funds administered by the
commission under this chapter.
D. Not later
than March 1 of each year, the authority shall make a report of its activities
under this chapter in the preceding calendar year, including a copy of the
annual audit, to the governor, the president of the senate and the speaker of
the house of representatives. The report shall include a statement of:
1. The
number and location of sustainable energy development parks established as of
the end of the calendar year pursuant to article 3 of this chapter.
2. The
authority's success in attracting sustainable energy generation facilities to
sustainable energy development parks pursuant to article 3 of this chapter.
3. The
amount of income tax credits and property tax reductions authorized for the
calendar year pursuant to article 3 of this chapter. END_STATUTE
ARTICLE
2. FINANCIAL PROVISIONS
START_STATUTE30-421. Sustainable energy development fund
A. The
sustainable energy development fund is established to be maintained in
perpetuity consisting of:
1. Monies
received from the United States government, including capitalization grants.
2. Monies
received from the issuance and sale of obligations and notes under this
chapter.
3. Interest
and other income received from investing monies in the fund, including the
investment of surplus revenues.
4. Ad
valorem property tax revenues received pursuant to section 42‑14554.
5. Monies
appropriated by the legislature.
6. Monies
received by the authority from rents, fees, charges, contracts and other
payments.
7. Gifts,
grants and donations received from any public or private source.
B. The fund
shall include a separate decommissioning account consisting solely of:
1. Monies
received from the issuance and sale of obligations and notes under this chapter
for decommissioning purposes.
2. Interest
and other income received from separately investing monies in the account.
3. Monies
received for decommissioning purposes from the United states government,
legislative appropriations and gifts, grants and donations from any public or
private source.
C. The
commission may adopt resolutions to establish, and segregate the fund into,
additional accounts and subaccounts to secure bonds or other obligations under
this chapter or to further segregate monies pledged for specific purposes and
projects under this chapter.
D. Any
account or subaccount of the fund may be pledged or assigned to obligation
holders as security for specific obligations or to a trustee who may be
appointed to act on behalf of the OBLIGATION holders.
E. The
fiscal agent for the fund shall invest and otherwise manage the monies in the
fund as directed by the commission.
F. Monies in
the fund may be used for any purpose of the authority under this chapter,
except that monies segregated in specific accounts and subaccounts may be used
only for the specific objective of the account or subaccount.
G. Monies in
the fund and its accounts and subaccounts are continuously appropriated and are
exempt from the provisions of section 35‑190 relating to lapsing of
appropriations. END_STATUTE
START_STATUTE30-422. Bonds and other obligations
A. The
authority, through its commission, may issue negotiable obligations in a
principal amount that in its opinion is necessary to provide sufficient monies
for accomplishing the purposes of this chapter, for maintaining sufficient
reserves to secure the obligations, to pay the necessary costs of issuing,
selling and redeeming the obligations and to pay other expenditures of the
authority incidental to and necessary and convenient to carry out the purposes
of this chapter. The obligations may be fixed rate or variable rate, federally
tax exempt or taxable, or short term or long term to fund sustainable energy
generation facilities and related projects.
B. The commission
must authorize the obligations by resolution. The resolution shall
prescribe:
1. The rate
or rates of interest and the denominations of the obligations.
2. The date
or dates of the obligations and maturity.
3. The
manner of executing the obligations.
4. The
medium and place of payment.
5. The terms
of redemption.
C. The
commission shall provide notice of its intention to issue obligations in a
manner consistent with current market practice.
D. The
commission may sell the obligations by competitive bid, including an online
bidding process, or by negotiated sale for public or private offering at the
price and on the terms prescribed in the resolution. If obligations
are sold through an online bidding process, bids for the obligations that are
entered into the system may be concealed until a specified time or disclosed in
the bidding process. For the purposes of this subsection, "online bidding
process" means a procurement process in which the commission receives bids
electronically over the internet in a real-time, competitive bidding event.
E. All
proceeds from the sale of the obligations shall be deposited in the appropriate
account or subaccount of the sustainable energy development fund.
F. To secure
any obligations authorized by this section, the commission by resolution may:
1. Provide
that obligations issued under this section be secured by a first lien on all or
part of the monies paid into the appropriate account or subaccount of the
sustainable energy development fund.
2. Pledge or
assign to or in trust for the benefit of the holder or holders of the
obligations any part or appropriate account or subaccount of the monies in the
fund as is necessary to pay the principal and interest of the obligations as
they come due.
3. Set
aside, regulate and dispose of reserves and sinking funds.
4. Provide
that sufficient amounts of the proceeds from the sale of the obligations be
used to fully or partly fund any reserves or sinking funds set up by the
resolution.
5. Prescribe
the procedure, if any, by which the terms of any contract with holders of
obligations may be amended or abrogated, the amount of obligations the holders
of which must consent to and the manner in which consent may be given.
6. Provide
for payment from the proceeds of the sale of the obligations of all legal and
financial expenses incurred by the commission in issuing, selling, delivering
and paying the obligations.
7. Conduct
any other matters that in any way may affect the security and protection of the
obligations.
G. The
members of the commission or any person executing the obligations are not
personally liable for the payment of the obligations. The
obligations are valid and binding notwithstanding that before their delivery
any of the persons whose signatures appear on the obligations cease to be
members of the commission. From and after the sale and delivery of
the obligations, they are incontestable by the commission.
H. The
obligations issued under this chapter, their transfer and the income from the
obligations are at all times free from taxation in this state.
I. The
commission may place any restrictions on reinvestment yield on the obligations
or on any monies pledged to pay the obligations if necessary to comply with
federal income tax laws and regulations to gain federal tax benefits available
with respect to the obligations. Proceeds of the obligations shall be invested
in a manner that avoids arbitrage penalties prescribed by federal law.
J. The
commission, out of any monies available for that purpose, may purchase
obligations, which may be canceled, at a price not exceeding either of the
following:
1. If the
obligations are then redeemable, the redemption price then applicable plus
accrued interest to the next interest payment date.
2. If the
obligations are not then redeemable, the redemption price applicable on the
first date after purchase on which the obligations become subject to redemption
plus accrued interest to that date. END_STATUTE
START_STATUTE30-423. Bond obligations of the authority
A. Bonds and
other obligations issued under this chapter are obligations of the Arizona power authority, are payable only according to the terms of the bonds and are not
general, special or other obligations of this state.
B. The bonds
and other obligations do not constitute a legal debt of this state and are not
enforceable against this state.
C. Payment
of the bonds and obligations is not enforceable out of any state monies other
than the income and revenue pledged and assigned pursuant to this article to,
or in trust for the benefit of, the holder or holders of the obligations.
END_STATUTE
START_STATUTE30-424. Certification of bonds by attorney
general
The commission may
submit any bonds and other obligations issued under this chapter to the
attorney general after all proceedings for their authorization have been
completed. On submission the attorney general shall examine and pass
on the validity of the obligations and the regularity of the
proceedings. If the proceedings comply with this chapter, and if the
attorney general determines that, when delivered and paid for, the obligations
will constitute binding and legal obligations of the authority, the attorney
general shall certify, in substance, that they are issued according to the
constitution and laws of this state. END_STATUTE
START_STATUTE30-425. Obligations as legal investments
Bonds and other obligations issued under this chapter are
securities in which public officers and bodies of this state and of
municipalities and political subdivisions of this state, all companies,
associations and other persons carrying on an insurance business, all financial
institutions, investment companies and other persons carrying on a banking
business, all fiduciaries and all other persons who are authorized to invest in
obligations of this state may properly and legally invest. The
obligations are also securities that may be deposited with public officers or
bodies of this state and municipalities and political subdivisions of this
state for purposes that require the deposit of state bonds or obligations.
END_STATUTE
START_STATUTE30-426. Agreement of state
This state pledges to
and agrees with the holders of the obligations that this state will not limit
or alter the rights vested in the Arizona power authority or any successor
agency to produce sufficient revenue to fulfill the terms of any agreements
made with the holders of the obligations, or in any way impair the rights and
remedies of the obligation holders, until all obligations issued under this
chapter, together with interest, including interest on any unpaid installments
of interest, and all costs and expenses in connection with any action or
proceedings by or on behalf of the obligation holders, are fully met and
discharged. The commission as agent for this state may include this
pledge and undertaking in its resolutions and indentures securing its
obligations. END_STATUTE
ARTICLE 3. SUSTAINABLE ENERGY DEVELOPMENT
PARKS
START_STATUTE30-441. Definitions
In this article, unless
the context otherwise requires:
1. "Business
entity" means an owner of a sustainable energy generation facility located
in a sustainable energy development park regardless of the form of the owner's
ownership interest.
2. "Sustainable
energy development park" or "park" means a sustainable energy development park established under this article. END_STATUTE
START_STATUTE30-442. Sustainable energy development parks;
plan; hearing
A. The
commission may establish sustainable energy development parks as provided by
this article.
B. The
commission shall hold at least one public hearing on the plan for a proposed
park in the incorporated city or town nearest to the proposed park. A notice
of the hearing shall be published once a week for at least four consecutive
weeks in a newspaper of general circulation in the city or town, shall be
posted on the authority's official website for at least four weeks before the
hearing and shall be sent by certified mail to the governing bodies of the
county and each city or town located within fifteen miles of the exterior boundaries
of the proposed park. At the hearing the commission shall hear and receive
oral and written comments on the proposed park.
C. A
sustainable energy development park:
1. Shall be
located in an unincorporated area in a single county and zoned for commercial,
industrial, manufacturing, business park, research park or any other
appropriate use consistent with the county's comprehensive plan.
2. Shall
not:
(a) Include a geographical area
larger than the actual site of the sustainable energy generation facilities and
administrative and operational improvements that are necessary and ancillary to
the generation and transmission process.
(b) Include any noncontiguous
territory.
(c) Surround an area that is not
part of the park.
D. The plan
for the proposed park shall include:
1. A map
showing the proposed boundaries of the park.
2. A written
narrative explaining the area and the development goals and strategy for the
park, including prospective sustainable energy generation facilities to be
located in the park and the identities of developers, promoters, owners and
OPERATORS of the facilities.
3. Appropriate
incentives and initiatives that local governments could provide or establish to
encourage the location of sustainable energy generation facilities in the park,
including economic or financial incentives, increased public services, improved
infrastructure and regulatory simplification and expedition.
4. The
management or administrative responsibility for the park.
5. A
termination date for the park. During the last year before
termination, the commission may consider renewal of the park and after a public
hearing may renew the park for an additional specific number of years if the
park continues to meet the criteria prescribed by this article. A renewal of
the park may not include a change in the park boundaries.
E. Before
establishing the park, the commission shall consider all comments received at
the public hearing and comments received from the county board of supervisors,
the governing bodies of other local governmental entities and state agencies,
and may amend or adjust the plan for the proposed park as appropriate. END_STATUTE
START_STATUTE30-443. Qualifying sustainable energy
generation facilities
The commission shall
adopt by rule pursuant to title 41, chapter 6, article 3 appropriate standards
that a sustainable energy generation facility must meet to qualify for the
state and local incentives provided pursuant to this article. Qualifying
sustainable energy generation facilities must meet the following requirements:
1. Include
direct capital investment in physical plant facilities located within the
geographic boundaries of the park.
2. Bring new
incremental jobs to the county in which the park is located. For the purposes
of this paragraph, "new incremental jobs" means new full-time
employment positions that are not shifted from another location in this state.
3. Include
significant capital investment, high paying employment or significant purchases
from vendors and providers in this state or any combination of these economic
factors. For the purposes of this paragraph:
(a) "High paying
employment" means annual compensation of full-time employment positions in
a business entity that is at least equal to the wage offered in the county in
which the park is located as computed annually by the department of economic
security research administration division.
(b) "Significant capital
investment" means at least one billion dollars spent or financed to
acquire, lease or improve property, including land, buildings, machinery and
fixtures.
(c) "Significant
purchases" means at least twenty‑five per cent of capital
investment.
4. After
accounting for the tax incentives, produce a net increase, over the first five
years of the project, in tax revenues derived by this state from:
(a) Transaction privilege and
affiliated excise taxes pursuant to title 42, chapter 5.
(b) Corporate income taxes paid by
business entities owning or operating the facility pursuant to title 43,
chapter 11.
(c) Individual income taxes paid by
business entities, and by employees of business entities, owning or operating
the facility pursuant to title 43, chapter 10. END_STATUTE
START_STATUTE30-444. Qualifying for tax incentives;
certificate; procedure
A. A
business entity that owns a sustainable energy generation facility operating in
a sustainable energy development park is eligible for an income tax credit
under section 43-1083.01 or 43-1164.01. Real and personal property
and improvements that are used in a sustainable energy development park for
generating sustainable energy shall be assessed as class six property as
provided by section 42-12006.
B. The
authority shall certify the eligibility of BUSINESS entities for the tax
incentives pursuant to this article. A business entity may not claim an income
tax credit under section 43-1083.01 or 43-1164.01 or claim class six
classification for its taxable property in a sustainable energy development park unless the business entity has a certificate of qualification under this
section.
C. A
business entity must apply to the authority for a certificate of
qualification. The application shall include:
1. The
nature of the business organization and the ownership interest of each business
entity in the sustainable energy generation facility.
2. Documentation
of new state revenues generated from the business entity's sustainable energy
generation facility that were paid during the preceding calendar year.
3. A
document that expressly waives the confidentiality of the entity's taxpayer
information for the purposes of this section and directs and authorizes the
department of revenue to disclose to the authority the business entity's state
tax returns and other information concerning the entity that would otherwise be
subject to confidentiality under title 42, chapter 2, article 1 or section 6103
of the internal revenue code. The authority shall transmit this document to
the department of revenue, which shall then provide to the authority the
information that the business entity authorizes. Taxpayer information that the
department of revenue provides to the authority remains confidential and is not
subject to disclosure by the authority under title 39.
D. If, after
review of the information provided by the business entity and the department of
revenue, the commission determines that the documentation provided by the
business entity:
1. Is not
substantially accurate or complete, the commission shall either:
(a) Deny the tax incentive
certification.
(b) Inform the business entity that
the documentation was inadequate and allow the entity thirty days to submit new
documentation.
2. Is
substantially accurate and complete, the commission shall Issue a tax incentive
certificate to the business entity and provide a copy of the certificate to the
department of revenue and the county assessor.
E. A
business entity that claims tax incentives pursuant to this section must retain
the tax incentive certificate as evidence of qualification. END_STATUTE
Sec. 5. Section 42-2003, Arizona Revised
Statutes, is amended to read:
START_STATUTE42-2003. Authorized disclosure of confidential
information
A. Confidential information relating to:
1. A taxpayer may be disclosed to the taxpayer, its
successor in interest or a designee of the taxpayer who is authorized in
writing by the taxpayer. A principal corporate officer of a parent corporation
may execute a written authorization for a controlled subsidiary.
2. A corporate taxpayer may be disclosed to any
principal officer, any person designated by a principal officer or any person
designated in a resolution by the corporate board of directors or other similar
governing body.
3. A partnership may be disclosed to any partner of
the partnership. This exception does not include disclosure of
confidential information of a particular partner unless otherwise authorized.
4. An estate may be disclosed to the personal
representative of the estate and to any heir, next of kin or beneficiary under
the will of the decedent if the department finds that the heir, next of kin or
beneficiary has a material interest which will be affected by the confidential
information.
5. A trust may be disclosed to the trustee or
trustees, jointly or separately, and to the grantor or any beneficiary of the
trust if the department finds that the grantor or beneficiary has a material
interest which will be affected by the confidential information.
6. Any taxpayer may be disclosed if the taxpayer has
waived any rights to confidentiality either in writing or on the record in any
administrative or judicial proceeding.
7. The name and taxpayer identification numbers of
persons issued direct payment permits may be publicly disclosed.
B. Confidential information may be disclosed to:
1. Any employee of the department whose official
duties involve tax administration.
2. The office of the attorney general solely for its
use in preparation for, or in an investigation which may result in, any
proceeding involving tax administration before the department or any other
agency or board of this state, or before any grand jury or any state or federal
court.
3. The department of liquor licenses and control for
its use in determining whether a spirituous liquor licensee has paid all
transaction privilege taxes and affiliated excise taxes incurred as a result of
the sale of spirituous liquor, as defined in section 4-101, at the licensed
establishment and imposed on the licensed establishments by this state and its
political subdivisions.
4. Other state tax officials whose official duties
require the disclosure for proper tax administration purposes if the
information is sought in connection with an investigation or any other
proceeding conducted by the official. Any disclosure is limited to information
of a taxpayer who is being investigated or who is a party to a proceeding
conducted by the official.
5. The following agencies, officials and
organizations, if they grant substantially similar privileges to the department
for the type of information being sought, pursuant to statute and a written
agreement between the department and the foreign country, agency, state, Indian
tribe or organization:
(a) The United States internal revenue service,
alcohol and tobacco tax and trade bureau of the United States treasury, United
States bureau of alcohol, tobacco, firearms and explosives of the United States
department of justice, United States drug enforcement agency and federal bureau
of investigation.
(b) A state tax official of another state.
(c) An organization of states, federation of tax administrators
or multistate tax commission that operates an information exchange for tax
administration purposes.
(d) An agency, official or organization of a foreign
country with responsibilities that are comparable to those listed in
subdivision (a), (b) or (c) of this paragraph.
(e) An agency, official or organization of an Indian
tribal government with responsibilities comparable to the responsibilities of
the agencies, officials or organizations identified in subdivision (a), (b) or
(c) of this paragraph.
6. The auditor general, in connection with any audit
of the department subject to the restrictions in section 42‑2002,
subsection D.
7. Any person to the extent necessary for effective
tax administration in connection with:
(a) The processing, storage, transmission,
destruction and reproduction of the information.
(b) The programming, maintenance, repair, testing
and procurement of equipment for purposes of tax administration.
8. The office of administrative hearings relating to
taxes administered by the department pursuant to section 42‑1101, but the
department shall not disclose any confidential information:
(a) Regarding income tax, withholding tax or estate
tax.
(b) On any tax issue relating to information
associated with the reporting of income tax, withholding tax or estate tax.
9. The United States treasury inspector general for
tax administration for the purpose of reporting a violation of internal revenue
code section 7213A (26 United States Code section 7213A), unauthorized
inspection of returns or return information.
10. The financial management service of the United States treasury department for use in the treasury offset program.
11. The United States treasury department or its
authorized agent for use in the state income tax levy program and in the
electronic federal tax payment system.
12. The department of commerce for its use in:
(a) Qualifying motion picture production companies
for the tax incentives provided for motion picture production under chapter 5
of this title and sections 43‑1075 and 43‑1163.
(b) Fulfilling its annual reporting responsibility
pursuant to section 41-1517, subsections S and T.
(c) Qualifying applicants for the motion picture
infrastructure project tax credits under sections 43‑1075.01 and 43‑1163.01.
13. A prosecutor for purposes of section 32‑1164,
subsection C.
14. The state fire marshal for use in determining
compliance with and enforcing title 41, chapter 16, article 3.1.
15. The Arizona power authority for its use in qualifying business entities for tax incentives
pursuant to section 30-444.
C. Confidential information may be disclosed in any
state or federal judicial or administrative proceeding pertaining to tax
administration pursuant to the following conditions:
1. One or more of the following circumstances must
apply:
(a) The taxpayer is a party to the proceeding.
(b) The proceeding arose out of, or in connection
with, determining the taxpayer's civil or criminal liability, or the collection
of the taxpayer's civil liability, with respect to any tax imposed under this
title or title 43.
(c) The treatment of an item reflected on the
taxpayer's return is directly related to the resolution of an issue in the
proceeding.
(d) Return information directly relates to a
transactional relationship between a person who is a party to the proceeding
and the taxpayer and directly affects the resolution of an issue in the
proceeding.
2. Confidential information may not be disclosed
under this subsection if the disclosure is prohibited by section 42‑2002,
subsection C or D.
D. Identity information may be disclosed for
purposes of notifying persons entitled to tax refunds if the department is
unable to locate the persons after reasonable effort.
E. The department, upon the request of any person,
shall provide the names and addresses of bingo licensees as defined in section
5‑401, verify whether or not a person has a privilege license and number,
a distributor's license and number or a withholding license and number or
disclose the information to be posted on the department's web site or otherwise
publicly accessible pursuant to section 42‑1124, subsection F and section
42‑3201, subsection A.
F. A department employee, in connection with the
official duties relating to any audit, collection activity or civil or criminal
investigation, may disclose return information to the extent that disclosure is
necessary to obtain information which is not otherwise reasonably available.
These official duties include the correct determination of and liability for tax,
the amount to be collected or the enforcement of other state tax revenue laws.
G. If an organization is exempt from this state's
income tax as provided in section 43‑1201 for any taxable year, the name
and address of the organization and the application filed by the organization
upon which the department made its determination for exemption together with
any papers submitted in support of the application and any letter or document
issued by the department concerning the application are open to public inspection.
H. Confidential information relating to transaction
privilege tax, use tax, severance tax, jet fuel excise and use tax and rental
occupancy tax may be disclosed to any county, city or town tax official if the
information relates to a taxpayer who is or may be taxable by the county, city
or town. Any taxpayer information released by the department to the
county, city or town:
1. May only be used for internal purposes.
2. May not be disclosed to the public in any manner
that does not comply with confidentiality standards established by the
department. The county, city or town shall agree in writing with the
department that any release of confidential information that violates the
confidentiality standards adopted by the department will result in the
immediate suspension of any rights of the county, city or town to receive
taxpayer information under this subsection.
I. The department may disclose statistical
information gathered from confidential information if it does not disclose
confidential information attributable to any one taxpayer. In order to comply
with the requirements of section 42‑5029, subsection A, paragraph 3, the
department may disclose to the state treasurer statistical information gathered
from confidential information, even if it discloses confidential information
attributable to a taxpayer.
J. The department may disclose the aggregate amounts
of any tax credit, tax deduction or tax exemption enacted after January 1,
1994. Information subject to disclosure under this subsection shall not be
disclosed if a taxpayer demonstrates to the department that such information
would give an unfair advantage to competitors.
K. Except as provided in section 42‑2002,
subsection C, confidential information, described in section 42‑2001,
paragraph 2, subdivision (a), item (iii), may be disclosed to law enforcement
agencies for law enforcement purposes.
L. The department may provide transaction privilege
tax license information to property tax officials in a county for the purpose
of identification and verification of the tax status of commercial property.
M. The department may provide transaction privilege
tax, luxury tax, use tax, property tax and severance tax information to the
ombudsman‑citizens aide pursuant to title 41, chapter 8, article 5.
N. Except as provided in section 42‑2002,
subsection D, a court may order the department to disclose confidential
information pertaining to a party to an action. An order shall be made only
upon a showing of good cause and that the party seeking the information has
made demand upon the taxpayer for the information.
O. This section does not prohibit the disclosure by
the department of any information or documents submitted to the department by a
bingo licensee. Before disclosing the information the department
shall obtain the name and address of the person requesting the information.
P. If the department is required or permitted to
disclose confidential information, it may charge the person or agency
requesting the information for the reasonable cost of its services.
Q. Except as provided in section 42‑2002,
subsection D, the department of revenue shall release confidential information
as requested by the department of economic security pursuant to section 42‑1122
or 46‑291. Information disclosed under this subsection is limited to the
same type of information that the United States internal revenue service is
authorized to disclose under section 6103(l)(6) of the internal revenue code.
R. Except as provided in section 42‑2002,
subsection D, the department of revenue shall release confidential information
as requested by the courts and clerks of the court pursuant to section 42‑1122.
S. To comply with the requirements of section 42‑5031,
the department may disclose to the state treasurer, to the county stadium
district board of directors and to any city or town tax official that is part
of the county stadium district confidential information attributable to a
taxpayer's business activity conducted in the county stadium district.
T. The department shall release confidential
information as requested by the attorney general for purposes of determining
compliance with and enforcing section 44‑7101, the master settlement
agreement referred to therein and subsequent agreements to which the state is a
party that amend or implement the master settlement
agreement. Information disclosed under this subsection is limited to
luxury tax information relating to tobacco manufacturers, distributors,
wholesalers and retailers and information collected by the department pursuant
to section 44‑7101(2)(j).
U. For proceedings before the department, the office
of administrative hearings, the board of tax appeals or any state or federal
court involving penalties that were assessed against a return preparer or
electronic return preparer pursuant to section 42‑1103.02 or 42‑1125.01,
confidential information may be disclosed only before the judge or
administrative law judge adjudicating the proceeding, the parties to the
proceeding and the parties' representatives in the proceeding prior to its
introduction into evidence in the proceeding. The confidential information may
be introduced as evidence in the proceeding only if the taxpayer's name, the
names of any dependents listed on the return, all social security numbers, the taxpayer's
address, the taxpayer's signature and any attachments containing any of the
foregoing information are redacted and if either:
1. The treatment of an item reflected on such return
is or may be related to the resolution of an issue in the proceeding.
2. Such return or return information relates or may
relate to a transactional relationship between a person who is a party to the
proceeding and the taxpayer which directly affects the resolution of an issue
in the proceeding.
V. The department may disclose to the attorney
general confidential information received under section 44‑7111 and
requested by the attorney general for purposes of determining compliance with
and enforcing section 44‑7111. The department and attorney general shall
share with each other the information received under section 44‑7111, and
may share the information with other federal, state or local agencies only for
the purposes of enforcement of section 44‑7101, section 44‑7111 or
corresponding laws of other states. END_STATUTE
Sec. 6. Section 42-12001, Arizona Revised
Statutes, is amended to read:
START_STATUTE42-12001. Class one property
For purposes of taxation, class one is established consisting
of the following subclasses:
1. Producing mines and mining claims, personal
property used on mines and mining claims, improvements to mines and mining
claims and mills and smelters operated in conjunction with mines and mining
claims that are valued at full cash value pursuant to section 42‑14053.
2. Standing timber that is valued at full cash
value.
3. Real and personal property of gas distribution
companies, electric transmission companies, electric distribution companies,
combination gas and electric transmission and distribution companies, companies
engaged in the generation of electricity and electric cooperatives other than property that is specifically
included in class six that are valued at full cash value pursuant
to section 42‑14151.
4. Real and personal property of airport fuel
delivery companies that are valued pursuant to section 42‑14503.
5. Real and personal property that is used by
producing oil, gas and geothermal resource interests that are valued at full
cash value pursuant to section 42‑14102.
6. Real and personal property of water, sewer and
wastewater utility companies that are valued at full cash value pursuant to
section 42‑14151.
7. Real and personal property of pipeline companies
that are valued at full cash value pursuant to section 42‑14201.
8. Real and personal property of shopping centers
that are valued at full cash value or pursuant to chapter 13, article 5 of this
title, as applicable.
9. Real and personal property of golf courses that
are valued at full cash value or pursuant to chapter 13, article 4 of this
title.
10. All property, both real and personal, of
manufacturers, assemblers or fabricators valued under the provisions of this
title.
11. Real and personal property that is used in
communications transmission facilities and that provides public telephone or
telecommunications exchange or interexchange access for compensation to effect
two‑way communication to, from, through or within this state.
12. Real property and improvements that are devoted
to any other commercial or industrial use, other than property that is
specifically included in another class described in this article, and that are
valued at full cash value.
13. Personal property that is devoted to any other
commercial or industrial use, other than property that is specifically included
in another class described in this article, and that is valued at full cash
value. END_STATUTE
Sec. 7. Section 42-12006, Arizona Revised
Statutes, is amended to read:
START_STATUTE42-12006. Class six property
For purposes of taxation, class six is established consisting
of:
1. Noncommercial historic property as defined in
section 42‑12101 and valued at full cash value.
2. Real and personal property that is located within
the area of a foreign trade zone or subzone established under 19 United States
Code section 81 and title 44, chapter 18, that is activated for foreign trade
zone use by the district director of the United States customs service pursuant
to 19 Code of Federal Regulations section 146.6 and that is valued at full
cash value. Property that is classified under this paragraph shall not
thereafter be classified under paragraph 7 or 9 of this section.
3. Real and personal property and improvements that
are located in a military reuse zone that is established under title 41,
chapter 10, article 3 and that is devoted to providing aviation or aerospace
services or to manufacturing, assembling or fabricating aviation or aerospace
products, valued at full cash value and subject to the following terms and
conditions:
(a) Property may not be classified under this
paragraph for more than five tax years.
(b) Any new addition or improvement to property
already classified under this paragraph qualifies separately for classification
under this paragraph for not more than five tax years.
(c) If a military reuse zone is terminated, the
property in that zone that was previously classified under this paragraph shall
be reclassified as prescribed by this article.
(d) Property that is classified under this paragraph
shall not thereafter be classified under paragraph 4, or
7 or 9 of this section.
4. Real and personal property and improvements that
are located in an enterprise zone, that are owned or used by a small
manufacturing or small commercial printer
printing business that is
certified by the department of commerce pursuant to section 41‑1525.01
and that are valued at full cash value, subject to the following terms and
conditions:
(a) Property may not be classified under this
paragraph for more than five tax years.
(b) Property that is classified under this paragraph
shall not thereafter be classified under paragraph 3, or
7 or 9 of this section.
5. Real and personal property and improvements or a
portion of such property comprising a qualified environmental technology
manufacturing, producing or processing facility as described in section 41‑1514.02,
valued at full cash value and subject to the following terms and conditions:
(a) Property shall be classified under this
paragraph for twenty tax years from the date placed in service.
(b) Any addition or improvement to property already
classified under this paragraph qualifies separately for classification under
this subdivision for an additional twenty tax years from the date placed in
service.
(c) After revocation of certification under section
41‑1514.02, property that was previously classified under this paragraph
shall be reclassified as prescribed by this article.
(d) Property that is classified under this paragraph
shall not thereafter be classified under paragraph 7 of this section.
6. That portion of real and personal property that
is used on or after January 1, 1999 specifically and solely for remediation of
the environment by an action that has been determined to be reasonable and
necessary to respond to the release or threatened release of a hazardous
substance by the department of environmental quality pursuant to section 49‑282.06
or pursuant to its corrective action authority under rules adopted pursuant to
section 49‑922, subsection B, paragraph 4 or by the United States
environmental protection agency pursuant to the national contingency plan (40
Code of Federal Regulations part 300) and that is valued at full cash value.
Property that is not being used specifically and solely for the remediation
objectives described in this paragraph shall not be classified under this
paragraph. For the purposes of this paragraph, "remediation of the environment"
means one or more of the following actions:
(a) Monitoring, assessing or evaluating the release
or threatened release.
(b) Excavating, removing, transporting, treating and
disposing of contaminated soil.
(c) Pumping and treating contaminated water.
(d) Treatment, containment or removal of
contaminants in groundwater or soil.
7. Real and personal property and improvements
constructed or installed from and after December 31, 2004 through December 31,
2010 and owned by a qualified business under section 41-1516 and used solely
for the purpose of harvesting, transporting or the initial processing of
qualifying forest products removed from qualifying projects as defined in
section 41‑1516. The classification under this paragraph is subject to
the following terms and conditions:
(a) Property may be initially classified under this
paragraph only in valuation years 2005 through 2010.
(b) Property may not be classified under this
paragraph for more than five years.
(c) Any new addition or improvement, constructed or
installed from and after December 31, 2004 through December 31, 2010, to
property already classified under this paragraph qualifies separately for
classification and assessment under this paragraph for not more than five
years.
(d) Property that is classified under this paragraph
shall not thereafter be classified under paragraph 2, 3, 4 or 5 of this
section.
8. Real and personal property and improvements to
the property that are used specifically and solely to manufacture from and
after December 31, 2006 through December 31, 2016 biodiesel fuel that is one
hundred per cent biodiesel and its by-products and that are valued at full cash
value. This paragraph applies only to the portion of property that is used
specifically for manufacturing and processing one hundred per cent biodiesel
fuel, or its related by-products, from raw feedstock obtained from off-site
sources, including necessary on-site storage facilities that are intrinsically
associated with the manufacturing process. Any other commercial or industrial
use disqualifies the entire property from classification under this paragraph.
9. Personal
property and improvements that are located in a sustainable energy development
park established pursuant to title 30, chapter 2, article 3, consisting of a
central station electric generation facility that generates at least two
hundred fifty megawatts of sustainable energy that is supplied through a
connection to a public or private electric transmission or distribution utility
grid pursuant to a power purchase and delivery agreement and that is valued
pursuant to section 42-14553 and administrative and operational improvements
that are necessary and ancillary to the generation and transmission
process. Property may not be classified under this paragraph for
more than twenty years except that any new addition or improvement to property
already classified under this paragraph qualifies separately for classification
under this paragraph for not more than twenty years. Property that is
originally classified under this PARAGRAPH shall not thereafter be classified
under paragraph 2, 3 or 4 of this section. END_STATUTE
Sec. 8. Title 42, chapter 12, article 2,
Arizona Revised Statutes, is amended by adding section 42-12057, to read:
START_STATUTE42-12057. Qualifying sustainable energy
development park property
To qualify sustainable
energy development park property as class six pursuant to section 42-12006,
paragraph 9, the owner of the property must provide documentation to the
department that the central station sustainable energy generation facility has
the capacity to generate at least two hundred fifty megawatts of electricity
and has a grid connection to and a current power purchase and delivery
agreement with a public or private electric transmission or distribution
utility system. END_STATUTE
Sec. 9. Section 42-14151, Arizona Revised
Statutes, is amended to read:
START_STATUTE42-14151. Annual determination of valuation;
definition
A. The department shall annually determine the
valuation, in the manner prescribed by this article, of all property, owned or
leased, and used by taxpayers in the following businesses:
1. Operation of a natural gas distribution system.
2. Operation of a water utility system.
3. Operation of a sewer system or wastewater
treatment facility.
4. Operation of an electric generation facility, except for facilities that are subject to
taxation under article 11 of this chapter.
5. Operation of an electric transmission or
distribution system.
B. For the purposes of this article,
"generation of electricity" means the process of taking a source of
energy, including coal, natural gas, oil, nuclear fuel or renewable sources and
converting the energy into electricity to be delivered to customers through a
transmission and distribution system. END_STATUTE
Sec. 10. Title
42, chapter 14, Arizona Revised Statutes, is amended by adding article 11, to
read:
ARTICLE
11. VALUATION AND TAXATION OF
SUSTAINABLE ENERGY DEVELOPMENT PARK PROPERTY
START_STATUTE42-14551. Annual determination of valuation;
definition
A. The
department shall annually determine, as prescribed by this article, the
valuation of personal property and improvements that are used in a sustainable energy development park for generating sustainable energy. Real property that is
located in a sustainable energy development park shall not be valued or subject
to taxation under this article.
B. For the
purposes of this article, "business entity", "sustainable
energy", "sustainable energy development park" and
"sustainable energy generation facility" have the same meanings
prescribed by sections 30-401 and 30‑441. END_STATUTE
START_STATUTE42-14552. Annual report for purposes of
determining valuation; failure to file; penalty; forfeiture of appeal rights
A. on or
before April 1 of each year, a business entity that operates a sustainable
energy generation facility in a sustainable energy development park for
generating sustainable energy and that is valued pursuant to this article shall
file a report with the department, under oath, stating the information that the
department requires to enable it to make a valuation of the property. On or
before February 1 of each year, the department shall mail to the business
entity the forms for filing the report. On written request and for
good cause shown, the director may extend the time for filing the report
required by this section.
B. If a
business entity fails to file the report on or before April 1 of the valuation
year, or the extended due date if an extension is granted, the department shall
both:
1. Estimate
the value of the property based on one hundred five per cent of the preceding
year's valuation or on any information that is available to the department.
2. Assess a
penalty in the amount of the lesser of:
(a) One‑half
of one per cent of the value that is estimated by the department.
(b) One
hundred dollars per day for each day the business entity fails to file the
report beyond the due date.
C. If the
report is not filed on or before May 20 of the valuation year, the business
entity forfeits its right to appeal the valuation and classification pursuant
to section 42‑14005. END_STATUTE
START_STATUTE42-14553. Valuation of sustainable energy
generation facility; definitions
A. The
department shall determine the valuation of sustainable energy generation
facilities for the purposes of this article in the manner prescribed by this
section.
B. The
valuation of personal property and improvements that are used in a sustainable
energy generation facility is twenty per cent of the depreciated cost of the
property. In addition, the business entity may submit documentation
showing the need for, and the department shall consider, an additional
adjustment to recognize obsolescence using standard appraisal methods and
techniques.
C. The
department shall not value personal property construction work in progress
until the property is first placed in commercial service. For the
purposes of this subsection, "commercial service" means:
1. For
machinery and equipment used in the generation of electricity being valued and
placed on the tax roll for the first time, the official assumption of operation
and ownership of the machinery and equipment from the contractor by the plant
operator.
2. For
machinery and equipment added to existing electric generation facilities, that
the construction work has progressed to a sufficient degree for the machinery
and equipment to be useful for the purpose for which it is being constructed.
3. For
machinery and equipment related to self‑constructed facilities, that the
construction work has progressed to a sufficient degree for the machinery and
equipment to be useful for the purpose for which it is being constructed.
D. For the
purposes of this section:
1. "Personal
property" means all tangible property except for land and real property
improvements. Personal property includes foundations or supports for
the machinery or apparatus for which they are provided, including water cooling
towers.
2. "Real
property improvements" means buildings, including administration
buildings, maintenance warehouses and guard shacks, water retention ponds,
sewage treatment ponds, reservoirs, sidewalks, drives, curbs, parking lots,
tunnels, duct banks, canals, fencing and landscaping. END_STATUTE
START_STATUTE42-14554. Assessment, levy and collection of
tax; debt; lien
A. The
department shall annually:
1. Enter in
its records the valuation of sustainable energy generation facilities as
determined under section 42-14553.
2. Determine
the assessed valuation of the property as provided by sections 42‑12006
and 42‑15006.
3. Levy a
tax against the assessed valuation at a rate that equals the sum of the average
rates for primary and secondary property taxes in the taxing jurisdictions in
this state for the current tax year.
4. Collect
the taxes according to the schedules prescribed by section 42‑18052.
5. Transmit
the tax revenues to the ArizOna power authority for deposit in the sustainable
energy development fund pursuant to section 30‑421, subsection A.
B. The tax
imposed by this section is in lieu of all other ad valorem taxes on personal
property and improvements constituting sustainable energy generation facilities
located in sustainable energy development parks.
C. Delinquent
taxes bear interest at the rate determined pursuant to section 42‑1123.
D. The
valuations that are used for tax purposes pursuant to this article are a matter
of public record and are not confidential information under chapter 2, article
1 of this title.
E. The tax
imposed by this article:
1. Is a debt
of the business entity that owns the sustainable energy generation facility.
2. May be
collected by an action instituted and prosecuted by the attorney general on the
director's request.
3. Is a lien
pursuant to section 42‑17154 against the assessed sustainable energy
generation facility. END_STATUTE
Sec. 11. Section 42-15006, Arizona Revised
Statutes, is amended to read:
START_STATUTE42-15006. Assessed valuation of class six
property
The assessed valuation of class six property described in
section 42‑12006 is based on the following percentages to the full
cash value or limited valuation of class six property, as applicable:
1. Property described in section 42‑12006,
paragraphs 1, 2, 3, 5, 6, 7,
and 8 and 9, five per cent.
2. Property described in section 42‑12006,
paragraph 4:
(a) For primary property tax purposes, five per
cent.
(b) Except as provided in subdivision (c), for
secondary property tax purposes:
(i) Twenty-five per cent through December 31, 2006.
(ii) Twenty-four per cent beginning from and after
December 31, 2006 through December 31, 2007.
(iii) Twenty‑three per cent beginning from and
after December 31, 2007 through December 31, 2008.
(iv) Twenty-two per cent beginning from and after
December 31, 2008 through December 31, 2009.
(v) Twenty-one per cent beginning from and after
December 31, 2009 through December 31, 2010.
(vi) Twenty per cent beginning from and after
December 31, 2010.
(c) If subdivision (b) is finally adjudicated to be
invalid, for secondary property tax purposes, five per cent. END_STATUTE
Sec. 12. Repeal
Section 43-222,
Arizona Revised Statutes, is repealed.
Sec. 13. Title 43, chapter 2, article 2,
Arizona Revised Statutes, is amended by adding a new section 43-222, to read:
START_STATUTE43-222. Income tax credit review schedule
The joint legislative
income tax credit review committee shall review the following income tax
credits:
1. For years
ending in 0 and 5, sections 43‑1075, 43‑1075.01, 43‑1079.01,
43‑1087, 43‑1088, 43‑1090.01, 43‑1163, 43‑1163.01,
43‑1167.01, 43‑1175 and 43‑1182.
2. For years
ending in 1 and 6, sections 43‑1074.02, 43‑1083, 43‑1085, 43‑1164
and 43‑1183.
3. For years
ending in 2 and 7, sections 43‑1073, 43‑1079, 43‑1080, 43‑1086,
43‑1089, 43‑1089.01, 43‑1089.02, 43‑1090, 43‑1167,
43‑1169, 43‑1176 and 43‑1181.
4. For years
ending in 3 and 8, sections 43‑1074.01, 43‑1081, 43‑1168, 43‑1170
and 43‑1178.
5. For years ending in 4 and 9, sections 43‑1076,
43‑1081.01, 43‑1083.01, 43‑1084, 43‑1162, 43‑1164.01
and 43‑1170.01. END_STATUTE
Sec. 14. Title 43, chapter 10, article 5,
Arizona Revised Statutes, is amended by adding section 43-1083.01, to read:
START_STATUTE43-1083.01. Credit for sustainable energy
development
A. For
taxable years beginning from and after December 31, 2010 through December 31,
2030, a credit is allowed against the taxes imposed by this title for
investment and employment by a business entity that owns a business interest in
or operates a sustainable energy generation facility in a sustainable energy
development park established pursuant to title 30, chapter 2, article 3. To be
eligible for the credit, a taxpayer must be a business entity that is certified
by the Arizona power authority pursuant to section 30-444. When claiming the
credit the taxpayer must submit to the department a copy of the certificate of
qualification issued by the authority.
B. The
amount of the credit is 1.5 cents per kilowatt-hour of electricity generated by
the facility in the taxable year. The credit amount is apportioned, and the
taxpayer shall claim the credit in five equal annual installments in each of
five consecutive taxable years.
C. Co-owners
of the sustainable energy generation facility, including partners in a
partnership and shareholders of an S corporation, as defined in section 1361 of
the internal revenue code, may each claim only the pro rata share of the credit
allowed under this section based on the OWNERSHIP interest. The total of the
credits allowed all such owners may not exceed the amount that would be allowed
for a sole owner of the facility.
D. If the
allowable tax credit for a taxable year exceeds the income taxes otherwise due
on the claimant's income, or if there are no state income taxes due on the
claimants income, the excess amount of the claim may be carried forward as a
credit against subsequent years' income tax liability for not more than fifteen
taxable years.
E. If, after
receiving a credit pursuant to this section, the Arizona power authority
revokes the certificate of qualification of a business entity, other than for
reasons beyond the control of the BUSINESS entity as determined by the
authority, the taxpayer is permanently disqualified from credits under this
section in subsequent taxable years, including installment amounts apportioned
pursuant to subsection B of this section, and the amount of credit allowed the
taxpayer in all taxable years pursuant to this section is subject to recapture
pursuant to this subsection. The recapture of credits is computed by
increasing the amount of taxes imposed in the year following the year of
termination or revocation by the full amount of all credits previously allowed
under this section with annual simple interest equal to The prime rate charged
by banks on short-term business loans as determined for publication in the
bulletin of the board of governors of the federal reserve system as of the
first day of each taxable year, plus two per cent. END_STATUTE
Sec. 15. Title 43, chapter 11, article 6,
Arizona Revised Statutes, is amended by adding section 43-1164.01, to read:
START_STATUTE43-1164.01. Credit for sustainable energy
development
A. For
taxable years beginning from and after December 31, 2010 through December 31,
2030, a credit is allowed against the taxes imposed by this title for
investment and employment by a business entity that owns a business interest in
or operates a sustainable energy generation facility in a sustainable energy
development park established pursuant to title 30, chapter 2, article 3. To be
eligible for the credit, a taxpayer must be a business entity that is certified
by the Arizona power authority pursuant to section 30-444. When claiming the
credit the taxpayer must submit to the department a copy of the certificate of
qualification issued by the authority.
B. The
amount of the credit is 1.5 cents per kilowatt-hour of electricity generated by
the facility in the taxable year. The credit amount is apportioned, and the
taxpayer shall claim the credit in five equal annual installments in each of
five consecutive taxable years.
C. Co-owners
of the sustainable energy generation facility, including corporate partners in
a partnership, may each claim only the pro rata share of the credit allowed
under this section based on the ownership interest. The total of the credits
allowed all such owners may not exceed the amount that would be allowed for a
sole owner of the facility.
D. If the
allowable tax credit for a taxable year exceeds the income taxes otherwise due
on the claimant's income, or if there are no state income taxes due on the
claimants income, the excess amount of the claim may be carried forward as a
credit against subsequent years' income tax liability for not more than fifteen
taxable years.
E. If, after
receiving a credit pursuant to this section, the Arizona power authority
revokes the certificate of qualification of a business entity, other than for
reasons beyond the control of the BUSINESS entity as determined by the
authority, the taxpayer is permanently disqualified from credits under this
section in subsequent taxable years, including installment amounts apportioned
pursuant to subsection B of this section, and the amount of credit allowed the
taxpayer in all taxable years pursuant to this section is subject to recapture
pursuant to this subsection. The recapture of credits is computed by
increasing the amount of taxes imposed in the year following the year of
termination or revocation by the full amount of all credits previously allowed
under this section with annual simple interest equal to The prime rate charged
by banks on short-term business loans as determined for publication in the
bulletin of the board of governors of the federal reserve system as of the
first day of each taxable year, plus two per cent. END_STATUTE
Sec. 16. Purpose
Pursuant to section 43-223, Arizona Revised Statutes, the
income tax credits enacted in sections 43-1083.01 and 43-1164.01, Arizona
Revised Statutes, as added by this act, are intended to encourage investment in
sustainable energy generation facilities located in this state."
Amend title to conform
