renewable energy equipment; valuation; depreciation

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What Changed

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• Mar 3, 2026
  Transmit to Senate

  House
• Mar 8, 2026
  Senate First Reading

  Senatereading-1
• Mar 9, 2026
  Senate Second Reading

  Senatereading-2
• Mar 22, 2026
  DP

  Senatecommittee-passage
• Apr 13, 2026
  DP

  Senateinformal-passage

Roll-Call Votes

• Passed

  passagepass

  House · Feb 25, 2026

  0 yes0 no0 other0 absent0 excused0 not voting

• failed to pass

  passagepass

  House · Feb 25, 2026

  28 yes25 no0 other0 absent0 excused7 not voting

• do pass amended

  committee-passagefail

  House · Mar 2, 2026

  0 yes0 no0 other0 absent0 excused0 not voting

• Passed

  passagepass

  House · Mar 2, 2026

  32 yes24 no0 other0 absent0 excused3 not voting

• Passed

  passagepass

  House · Mar 2, 2026

  0 yes0 no0 other0 absent0 excused0 not voting

• do pass

  committee-passagefail

  Senate · Apr 13, 2026

  0 yes0 no0 other0 absent0 excused0 not voting

Documents

• HOUSE SUMMARY: 02/15/2026 Natural Resources, Energy & Water

  HTML →

• HOUSE SUMMARY: 02/20/2026 Caucus & COW

  HTML →

• HOUSE SUMMARY: 05/19/2026 House Engrossed

  HTML →

• SENATE FACT SHEET: 03/19/2026 FIN

  HTML →

• House ADD COW 03/03 - Floor Amend to Engrossed Bill - Gress

  PDF →

The bill as proposed to be amended is reprinted as follows:
Section 1. Section 42-14155, Arizona Revised Statutes, is amended
to read:
42-14155. Valuation    of    renewable  energy   and   storage
equipment; definitions
A. Through December 31, 2040, the department shall determine the
full cash value of taxable renewable energy and storage equipment in the
manner prescribed by this section.
B. SUBJECT TO SUBSECTION C OF THIS SECTION, the full cash value of
renewable energy and storage equipment is THE FOLLOWING:
1. FOR RENEWABLE ENERGY AND STORAGE EQUIPMENT THAT IS NOT OWNED BY
OR WHOLLY SUBJECT TO AN EXCLUSIVE POWER PURCHASE AGREEMENT WITH A PUBLIC
SERVICE CORPORATION OR PUBLIC POWER ENTITY DOING BUSINESS IN THIS STATE,
ONE HUNDRED PERCENT OF THE DEPRECIATED COST OF THE EQUIPMENT.      FOR THE
PURPOSES OF THIS PARAGRAPH, DEPRECIATED COST SHALL BE DETERMINED BY
DEDUCTING DEPRECIATION FROM ORIGINAL COST.
2. FOR RENEWABLE ENERGY AND STORAGE EQUIPMENT THAT IS OWNED BY OR
WHOLLY SUBJECT TO AN EXCLUSIVE POWER PURCHASE AGREEMENT WITH A PUBLIC
SERVICE CORPORATION OR PUBLIC POWER ENTITY DOING BUSINESS IN THIS STATE
AND [THAT IS IN SERVICE] [THE CONSTRUCTION OF THE RENEWABLE ENERGY AND
STORAGE EQUIPMENT WAS INITIATED] BEFORE JANUARY 1, [2027] [2030], twenty
percent of the depreciated cost of the equipment.     FOR THE PURPOSES OF
THIS PARAGRAPH, depreciated cost shall be determined by deducting
depreciation from taxable original cost.
3. FOR RENEWABLE ENERGY AND STORAGE EQUIPMENT THAT IS OWNED BY OR
WHOLLY SUBJECT TO AN EXCLUSIVE POWER PURCHASE AGREEMENT WITH A PUBLIC
SERVICE CORPORATION OR PUBLIC POWER ENTITY DOING BUSINESS IN THIS STATE
AND [THAT IS IN SERVICE] [THE CONSTRUCTION OF THE RENEWABLE ENERGY AND
STORAGE EQUIPMENT WAS INITIATED] FROM AND AFTER DECEMBER 31, [2026]
[2029], ONE HUNDRED PERCENT OF THE DEPRECIATED COST OF THE EQUIPMENT. FOR
THE PURPOSES OF THIS PARAGRAPH, DEPRECIATED COST SHALL BE DETERMINED BY
DEDUCTING DEPRECIATION FROM ORIGINAL COST.
C. FOR THE PURPOSES OF DETERMINING FULL CASH VALUE OF RENEWABLE
ENERGY AND STORAGE EQUIPMENT PURSUANT TO SUBSECTION B OF THIS SECTION,
depreciation shall not exceed ninety percent of the adjusted original
cost.
C. D. For the purposes of this section, all energy storage
equipment, both colocated with renewable energy and stand-alone energy
storage equipment, qualifies for valuation pursuant to this section.
D. E. For the purposes of this section:
1. "Depreciation" means straight-line depreciation over the useful
life, as adopted by the department, of the item of property.
2. "Electric utility scale" means a person that is engaged in a
business activity described in section 42-5063, subsection A or such
person's equipment or wholesale electricity suppliers.
3. "Energy storage" means commercially available technology for
electric utility scale that is capable of absorbing energy, storing energy
for a period of time and thereafter dispatching the energy and that uses
mechanical, chemical or thermal processes to store energy.
4. "Original cost" means the actual cost, without trending, of
acquiring or constructing property, including additions, retirements,
adjustments and transfers.
5. "Renewable    energy  and   storage   equipment"   means   electric
generation facilities, electric transmission, electric distribution,
energy storage, 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 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 property valued under sections 42-14154 and 42-14156.
6. "Taxable original cost" means the original cost reduced by the
value of any investment tax credits, production tax credits or cash grants
in lieu of investment tax credits applicable to the taxable renewable
energy and storage equipment.
Enroll and engross to conform
Amend title to conform