Arizona Laws 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.
Terms Used In Arizona Laws 42-14155
- Department: means the department of revenue. See Arizona Laws 42-1001
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Person: means a natural person, individual, proprietor, proprietorship, company, corporation, organization, association, joint venture, partner, partnership, trust, estate or limited liability company, the federal or state government, a political subdivision of a state or any other legal entity or combination of entities that owns, controls or has possession of real or personal property. See Arizona Laws 42-11001
- Property: includes both real and personal property. See Arizona Laws 1-215
- Valuation: means the full cash value or limited property value that is determined for real or personal property, as applicable. See Arizona Laws 42-11001
B. The full cash value of renewable energy and storage equipment is twenty percent of the depreciated cost of the equipment. Depreciated cost shall be determined by deducting depreciation from taxable original cost. Depreciation shall not exceed ninety percent of the adjusted original cost.
C. 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. 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.