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REFERENCE TITLE: tax; valuation; renewal energy equipment |
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State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014
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HB 2358 |
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Introduced by Representative Fann
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AN ACT
amending section 42‑14155, Arizona Revised Statutes; relating to valuation of renewable energy equipment.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-14155, Arizona Revised Statutes, is amended to read:
42-14155. Valuation of renewable energy equipment; definitions
A. Through December 31, 2040, the department shall determine the valuation full cash value of taxable renewable energy equipment in the manner prescribed by this section.
B. The full cash value of renewable energy equipment is twenty per cent of the depreciated cost of the equipment. depreciated cost shall be determined by deducting depreciation from taxable original cost.
c. the full cash value of land on which renewable energy equipment is sited shall be determined as follows:
1. if the land is owned by the taxpayer, the value of the land shall be determined as prescribed by section 42‑14156, subsection a, paragraph 1.
2. if the land is not owned by the taxpayer, the value of the land shall be determined by the county assessor of the county in which the land is located.
C. d. 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.
(a) Depreciation shall not exceed ninety per cent of the adjusted original cost.
(b) the taxpayer may submit documentation to the department showing the need for an adjustment to the department adopted useful life and the department shall consider the documentation.
2. "original cost" means the actual cost, without trending, of acquiring or constructing property, including additions, retirements, adjustments and transfers.
3. "Renewable energy equipment" means 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.
4. "taxable original cost" means 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 equipment.