ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

House: LARA DP 5-2-0-2

HB 2639: TPT; exemption; qualifying equipment; extension

Sponsor: Representative Griffin, LD 19

Caucus & COW

Overview

Extends the exemption, from December 31, 2026 to December 31, 2028, for the gross income from sales of qualifying equipment used for harvesting or processing qualifying forest products.

History

The gross proceeds of sales or gross income derived from sales of qualifying equipment purchased on June 30, 2004 through December 31, 2026 by a qualified business for harvesting or processing qualified forest products removed from qualified projects must be deducted from the tax base. To qualify for this deduction, the qualified business at the time of purchase must present its certification approved by the Arizona Department of Revenue (ADOR) (A.R.S. § 42-5061).

To qualify for state tax incentives, a business must:

1) be primarily engaged in a qualified project;

2) employ at least one permanent full-time employee;

3) agree to furnish to the Arizona Commerce Authority (Authority)information relating to the amount of state tax benefits that the business receives each year;

4) enter into a memorandum of understanding with the Authority; and

5) submit a copy of the certification to ADOR for approval before using the certificate for any tax incentive (A.R.S. § 41-1516).

A qualifying project means harvesting, transporting or processing qualifying forest products as required for certification (A.R.S. § 41-1516).

Provisions

1. Extends the transaction privilege and use tax exemption for qualifying equipment purchased by businesses certified as healthy forest enterprises from December 31, 2026 to December 31, 2028. (Sec. 1 and 2)

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5. HB 2639

6. Initials BSR Page 0 Caucus & COW

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