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The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are! The U.S. Department of Energy and the North Carolina Solar Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in the summer of 2014. Staff are currently working hard on the new DSIRE and are unfortunately only able to make minimal updates to the DSIRE website at this time. We apologize for any inconvenience and thank you for using DSIRE.

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Arizona

Arizona

Incentives/Policies for Renewables & Efficiency

Printable Version
Property Tax Assessment for Renewable Energy Equipment   

Last DSIRE Review: 06/18/2014
Program Overview:
State: Arizona
Incentive Type: Property Tax Incentive
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydroelectric, Other nonpetroleum renewable sources
Applicable Sectors: Utility, Other entities that generate, transmit or distribute -- but do not use -- eligible electricity
Amount:Renewable-energy equipment assessed at 20% of its depreciated cost
Equipment Requirements:Energy must not be used on-site
Expiration Date:12/31/2040
Authority 1:
Date Enacted:
Expiration Date:
A.R.S. ยง 42-14155
4/10/2000 (subsequently amended)
12/31/2040
Authority 2:
Date Enacted:
HB 2403
04/30/2014
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.


 
Contact:
  Tax Assistance
Arizona Department of Revenue
1600 W. Monroe
Phoenix, AZ 85007-2650
Phone: (602) 255-3381
Phone 2: (800) 352-4090
Web Site: http://www.revenue.state.az.us/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.