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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
House: NREW DP 5-3-0-2 |
HB 2918: renewable energy equipment; valuation; depreciation
Sponsor: Representative Marshall, LD 7
Caucus & COW
Overview
Expands the determinations made for the full cash value of renewable energy and storage equipment.
History
The Department of Revenue (DOR) exists to administer and enforce taxation law and has all the power and duties prescribed by law for that purpose. DOR is charged with the valuation of centrally assessed property and follows legal guidance in determining the value of said property (A.R.S. §§ 42-1004, 42-14001).
Taxable renewable energy and storage equipment has its full cash value determined by DOR. DOR presently determines the full cash value for renewable energy and storage equipment to be 20% of the depreciated cost of the equipment, as determined by deducting depreciation from taxable original cost. Depreciation cannot exceed 90% of the adjusted original cost.
Depreciation means straight-line depreciation over the useful life, as adopted by DOR, of the item or property.
Renewable energy and storage equipment means electric generation facilities, electric transmission, electric distribution, energy storage, gas distribution or combination gas and electric transmission and distributed as well as transmission and distribution cooperative property that is used or useful for generating, storing, transmitting or distributing 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 other specified property (A.R.S. § 42-14155)
Provisions
1. States full cash value is equal to 100% of the depreciated cost for specified renewable energy and storage equipment not owned by or subject to an exclusive power purchase agreement with specified entities. (Sec. 1)
2. Stipulates full cash value is equal to 20% of the depreciated cost for renewable energy and storage equipment that is owned by or subject to an exclusive power purchase agreement with specified entities that is in service before January 1, 2027. (Sec. 1)
3. States full cash value is equal to 100% of the depreciated cost for renewable energy and storage equipment that is owned by or subject to an exclusive power purchase agreement with specified entities and is in service after December 31, 2027. (Sec. 1)
4. Determines depreciated cost by deducting depreciation from original cost when determining the full cash value of renewable energy and storage equipment. (Sec. 1)
5. Makes technical and conforming changes. (Sec. 1)
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9. Initials CW/RS HB 2918
10. 2/18/2026 Page 0 Caucus & COW
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