Bill > HB2918

This bill amends Arizona law regarding how renewable energy and storage equipment is valued for tax purposes, specifically focusing on "full cash value," which is the market value used for property taxes. The key changes establish different valuation methods based on who owns the equipment or has an exclusive power purchase agreement with it, which is a contract to buy the electricity generated. For equipment not owned by or exclusively contracted with a public utility (a company that provides electricity to the public), its full cash value will be 100% of its depreciated cost, meaning its original cost minus accumulated depreciation. However, for equipment owned by or exclusively contracted with a public utility, the valuation changes: if it was in service before January 1, 2027, its value will be 20% of its depreciated cost; if it goes into service on or after January 1, 2027, its value will be 100% of its depreciated cost. The bill also clarifies that depreciation, which is the accounting method to spread the cost of an asset over its useful life, cannot reduce the equipment's value by more than 90% of its adjusted original cost. The bill also defines terms like "depreciation," "original cost," and "renewable energy and storage equipment" to ensure clarity in how these valuations are applied.

Agriculture and Natural Resources

https://apps.azleg.gov/BillStatus/BillOverview/84821