ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: NREW DP 13-0-0-0-0

HB 2640: environmental technology; biomass; forestry products

Sponsor:  Representative Nutt, LD 14

House Engrossed

Overview

Allows a company to continue qualifying for the Arizona Commerce Authority's (ACA) Environmental Technology Assistance Program (Program) if it locates or makes additional capital investment in a facility that processes biomass and forestry industry products.

History

The ACA's Program assists qualified manufacturers, producers and processors (companies) in locating or expanding facilities in Arizona. To qualify for assistance, a company must:

1)    Not import hazardous or special waste in Arizona unless it holds an ADEQ storage or treatment facility permit or ADEQ has approved a plan that authorizes it to accept special waste as part of a recycling operation; and

2)    Locate or make additional capital investments in a facility that:

a)    Is either owned by a qualified company or leased by that company for at least five years;

b)    Makes products from recycled materials or with renewable energy; or

c)    Cost at least $20,000,000 for new capital investment in Arizona within five years after construction begins or improvements are installed (A.R.S. § 41-1514.02(E)).

Statute directed the Department of Commerce, which was the ACA's predecessor, to identify and certify qualified facilities before June 30, 1996. To maintain its certification, a company must:

1)    Submit copies of all required information on actual or projected number of employees at the qualified facility and the actual or projected annual capital investment in those facilities; and

2)    Allow audits and inspections to verify the accuracy of the submitted information (A.R.S. § 41-1514.02(C)).

Certification allows someone to earn a tax credit for construction expenses against individual income taxes (A.R.S. § 43-1080) and corporate income taxes (A.R.S. § 43-1169). Each tax credit is 10% the amount spent during the taxable year to construct the facility.  

Provisions

1.    ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteAllows a company to continue qualifying for Program assistance if it is locating or making additional capital investment in a facility that it either owns or leased for five or more years and that predominantly processes biomass and forestry industry products.   

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5.    Initials PAB                       House Engrossed

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