43-1164.03. Renewable energy production tax credit; definitions
A. A credit is allowed against the taxes imposed by this title for the production of electricity using renewable energy resources.
B. The taxpayer is eligible for the credit:
1. If the taxpayer holds title to a qualified energy generator that first produces electricity from and after December 31, 2010 and before January 1, 2021.
2. For ten consecutive calendar years beginning with the calendar year in which the qualified energy generator begins producing electricity that is transmitted through a transmission facility to a grid connection with a public or private electric transmission or distribution utility system. That same date applies with respect to that generator until the expiration of the ten-year period regardless of whether the generator is sold to another taxpayer or goes out of production before the expiration of the ten-year period.
C. The credit authorized by this section is based on the electricity that is generated by a qualified energy generator during a calendar year. For a taxpayer that files on a fiscal year basis, the credit shall be claimed on the return for the taxable year in which the calendar year ends.
D. Subject to subsection G of this section, the amount of the credit is:
1. One cent per kilowatt-hour of the first two hundred thousand megawatt-hours of electricity produced by a qualified energy generator in the calendar year using a wind or biomass derived qualified energy resource.
2. The following amounts for electricity produced by a qualified energy generator using a solar light derived or solar heat derived qualified energy resource:
(a) Four cents per kilowatt-hour in the first calendar year in which the qualified energy generator produces electricity.
(b) Four cents per kilowatt-hour in the second calendar year in which the qualified energy generator produces electricity.
(c) Three and one-half cents per kilowatt-hour in the third calendar year in which the qualified energy generator produces electricity.
(d) Three and one-half cents per kilowatt-hour in the fourth calendar year in which the qualified energy generator produces electricity.
(e) Three cents per kilowatt-hour in the fifth calendar year in which the qualified energy generator produces electricity.
(f) Three cents per kilowatt-hour in the sixth calendar year in which the qualified energy generator produces electricity.
(g) Two cents per kilowatt-hour in the seventh calendar year in which the qualified energy generator produces electricity.
(h) Two cents per kilowatt-hour in the eighth calendar year in which the qualified energy generator produces electricity.
(i) One and one-half cents per kilowatt-hour in the ninth calendar year in which the qualified energy generator produces electricity.
(j) One cent per kilowatt-hour in the tenth calendar year in which the qualified energy generator produces electricity.
E. To qualify for the purposes of this section, an energy generator may be located within one mile of an existing qualified energy generator only if the owner of the energy generator or the owner's corporate affiliates are not the owner of or the corporate affiliate of the owner of the existing qualified energy generator.
F. To be eligible for the credit under this section, the taxpayer must apply to the department, on a form prescribed by the department, for certification of the credit. The department shall only accept applications beginning January 2 through January 31 of the year following the calendar year for which the credit is being requested. The application shall include:
1. The name, address and social security number or federal employer identification number of the applicant.
2. The location of the taxpayer's facility that produces electricity using renewable energy resources for which the credit is claimed.
3. The amount of the credit that is claimed.
4. The date the qualified energy generator began producing commercially marketable amounts of electricity.
5. Any additional information that the department requires.
G. The department shall review each application under subsection F of this section and certify to the taxpayer the amount of the credit that is authorized. The amount of the credit for any calendar year shall not exceed two million dollars per facility that produces electricity using renewable energy resources. Credits are allowed under this section and section 43-1083.02 on a first come, first served basis. The department shall not authorize tax credits under this section and section 43-1083.02 that exceed in the aggregate a total of twenty million dollars for any calendar year. The first time that a taxpayer submits a qualified application for a qualified energy generator under subsection F of this section, the department shall add the taxpayer's name to a credit authorization list that is maintained in the order in which qualified applications are first received by the department on behalf of the qualified energy generator. A taxpayer's position on the credit authorization list shall be determined in the first year the taxpayer submits an application under subsection F of this section for the qualified energy generator. The taxpayer's position on the credit authorization list for a particular qualified energy generator shall remain unchanged for the ten years that are specified in subsection B, paragraph 2 of this section or until a year in which the taxpayer fails to submit a timely application under subsection F of this section or otherwise fails to comply with this section. If a taxpayer is removed from the credit authorization list for a qualified energy generator, the taxpayer may establish a new position on the credit authorization list in a subsequent year by filing a timely application for a qualified energy generator that qualifies for the credit. If an application is received that, if authorized, would require the department to exceed the twenty million dollar limit, the department shall grant the applicant only the remaining credit amount that would not exceed the twenty million dollar limit. After the department authorizes twenty million dollars in tax credits, the department shall deny any subsequent applications that are received for that calendar year. The department shall not authorize any additional tax credits that exceed the twenty million dollar limit even if the amounts that have been certified to any taxpayer were not claimed or a taxpayer otherwise fails to meet the requirements to claim the additional credit.
H. Co-owners of a qualified energy generator, including corporate partners in a partnership and members of a limited liability company, may each claim the pro rata share of the credit allowed under this section based on ownership interest. The total of the credits allowed all such owners of the qualified energy generator may not exceed the amount that would have been allowed for a sole owner of the generator.
I. If the allowable tax credit for a taxpayer exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the amount of the claim not used to offset taxes under this title may be carried forward for not more than five consecutive taxable years as a credit against subsequent years' income tax liability.
J. The department shall adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this section.
K. For the purposes of this section:
1. " Biomass" means organic material that is available on a renewable or recurring basis, including:
(a) Forest-related materials, including mill residues, logging residues, forest thinnings, slash, brush, low-commercial value materials or undesirable species, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds and woody material harvested for the purpose of forest fire fuel reduction or forest health and watershed improvement.
(b) Agricultural-related materials, including orchard trees, vineyard, grain or crop residues, including straws and stover, aquatic plants and agricultural processed coproducts and waste products, including fats, oils, greases, whey and lactose.
(c) Animal waste, including manure and slaughterhouse and other processing waste.
(d) Solid woody waste materials, including landscape or right-of-way tree trimmings, rangeland maintenance residues, waste pallets, crates and manufacturing, construction and demolition wood wastes, excluding pressure-treated, chemically-treated or painted wood wastes and wood contaminated with plastic.
(e) Crops and trees planted for the purpose of being used to produce energy.
(f) Landfill gas, wastewater treatment gas and biosolids, including organic waste byproducts generated during the wastewater treatment process.
2. " Qualified energy generator" means a facility that has at least five megawatts generating capacity, that is located on land in this state owned or leased by the taxpayer, that produces electricity using a qualified energy resource and that sells that electricity to an unrelated entity, unless the electricity is sold to a public service corporation.
3. " Qualified energy resource" means a resource that generates electricity through the use of only the following energy sources:
(a) Solar light.
(b) Solar heat.
(c) Wind.
(d) Biomass.
Structure Arizona Revised Statutes
§ 43-102 - Declaration of intent
§ 43-105 - Internal revenue code; definition; application
§ 43-201 - Preemption by state of income taxation
§ 43-204 - Repeal; savings clause
§ 43-206 - Urban revenue sharing fund; allocation; distribution; withholding
§ 43-208 - Administration and enforcement
§ 43-211 - I didn't pay enough fund
§ 43-212 - Individual income tax model; fiscal impact requests; staff access
§ 43-221 - Joint legislative income tax credit review committee; report
§ 43-222 - Income tax credit review schedule
§ 43-223 - Requirements for new income tax credits established by the legislature
§ 43-224 - Individual and corporate income tax credits; annual report; termination of unused credits
§ 43-225 - Affordable housing tax credit review committee; reports
§ 43-241 - Time for performance of acts; definition
§ 43-242 - Change of taxpayer organization; nontaxable event
§ 43-243 - State general fund revenue notification; tax rate adjustment
§ 43-244 - State general fund revenue notification; tax rate adjustment
§ 43-301 - Individual returns; definition
§ 43-302 - Arizona small business income tax return; election; revocation
§ 43-303 - Returns by agent or guardian
§ 43-305 - Fiduciary returns; two or more fiduciaries
§ 43-306 - Partnership returns
§ 43-307 - Corporation returns
§ 43-308 - Gross income defined for purposes of determination to file
§ 43-309 - Joint returns of husband and wife
§ 43-310 - Separate returns after filing joint returns
§ 43-311 - Joint return after filing separate return
§ 43-312 - Information return of sales; nonresident real estate transactions; escrow agents; reports
§ 43-321 - Information required in returns
§ 43-322 - Signature presumed to be taxpayer's
§ 43-323 - Place and form of filing returns
§ 43-324 - Rounding to the nearest dollar
§ 43-325 - Time for filing returns
§ 43-327 - Recomputation of tax or amended return due after federal adjustment; definition
§ 43-328 - Returns filed by persons outside the United States
§ 43-382 - Solicitation of return preparation prohibited; classification
§ 43-401 - Withholding tax; rates; election by employee
§ 43-402 - Definition of "employer"
§ 43-403 - Employment excluded from withholding
§ 43-405 - Extension of withholding to gambling winnings
§ 43-407 - Extension of withholding to unemployment compensation payments
§ 43-408 - Voluntary withholding on out-of-state wages
§ 43-409 - Job creation withholdings clearing account
§ 43-411 - Employer entitled to address of employee
§ 43-412 - Returns of withholding to be filed with department
§ 43-413 - Statement of withholding to employees
§ 43-414 - Liability for failure to withhold
§ 43-415 - Withholdings as trust fund for state
§ 43-416 - Failure to remit withholding; classification
§ 43-417 - Withholding without resort to legal action
§ 43-418 - Payroll service company; registration; definitions
§ 43-431 - Amounts withheld considered part payment of tax
§ 43-432 - Refund for excess withholding
§ 43-433 - Remedies for withheld taxes
§ 43-434 - Exemption in case of nonresident employees
§ 43-435 - Failure to collect and pay over tax; personal liability
§ 43-501 - When taxes are payable
§ 43-504 - Tax payments made in advance
§ 43-505 - Tax payments made to department; order of crediting
§ 43-562 - Husband and wife, liability for tax
§ 43-563 - Recovery of erroneous refunds
§ 43-567 - Lien for tax on trust income
§ 43-581 - Payment of estimated tax; rules; penalty; forms
§ 43-582 - Payment of estimated tax by corporations; penalty; forms
§ 43-583 - Payment of estimated tax by small business taxpayers; penalty; forms
§ 43-611 - Protest of tax deemed claim for refund
§ 43-612 - Contribution of portion of income tax refund to political parties trust fund
§ 43-613 - Contribution to child abuse prevention fund
§ 43-614 - Contribution of portion of refund to special olympics
§ 43-615 - Contribution to game, nongame, fish and endangered species fund
§ 43-616 - Contribution to neighbors helping neighbors fund
§ 43-617 - Contribution for solutions teams assigned to schools
§ 43-618 - Contribution to domestic violence services fund
§ 43-619 - Contribution to the spaying and neutering of animals fund
§ 43-620 - Contribution to veterans' donations fund
§ 43-621 - Contribution to I didn't pay enough fund
§ 43-622 - Contribution to sustainable state parks and roads fund
§ 43-645 - Interest on related items or where related taxpayers exist
§ 43-721 - Immediate assessment upon bankruptcy or receivership
§ 43-722 - Notice of bankruptcy or receivership to department
§ 43-723 - Claim for tax in case of bankruptcy or receivership
§ 43-724 - Collection of tax in case of bankruptcy or receivership
§ 43-901 - Taxable income computation
§ 43-902 - Period in which deductions and credits to be taken
§ 43-921 - Computation of tax when law changed
§ 43-922 - Payment or refund of tax when law changed
§ 43-923 - Change in tax rates
§ 43-931 - Change of accounting period; computation of income; due date of return
§ 43-932 - Return for a taxpayer not in existence throughout a complete taxable year
§ 43-941 - Allocation in the case of affiliated taxpayers
§ 43-942 - Allocation in the case of controlled corporations
§ 43-943 - Allocation in the case of husband and wife
§ 43-944 - Disclosure by department of basis of allocation
§ 43-945 - Allocation of exemptions for blind persons and persons over sixty-five years of age
§ 43-946 - Transactions between corporations and affiliated taxpayers
§ 43-947 - Consolidated returns by an affiliated group of corporations; definitions
§ 43-951 - Assessment against transferee for tax
§ 43-952 - Liability of transferee of assets
§ 43-953 - Period of limitation relating to transferees
§ 43-961 - Items not deductible in computation of taxable income
§ 43-1002 - Married person; application of definition
§ 43-1011 - Taxes and tax rates
§ 43-1011; Version 2 - Taxes and tax rates
§ 43-1012 - Optional tax table
§ 43-1013 - Income tax surcharge for public education
§ 43-1014 - Entity-level tax election; partnerships; S corporations; rules
§ 43-1711 - Taxes and tax rate
§ 43-1021 - Addition to Arizona gross income
§ 43-1022 - Subtractions from Arizona gross income
§ 43-1023 - Exemptions for blind persons and persons sixty-five years of age or older
§ 43-1024 - Americans with disabilities act access expenditures
§ 43-1025 - Agricultural crops contributed to charitable organizations; definitions
§ 43-1026 - Additions and subtractions; Arizona small business income tax returns
§ 43-1027 - Subtraction for wood stoves, wood fireplace or gas fired fireplaces; definitions
§ 43-1029 - Restoration of a substantial amount held under claim of right; computation of tax
§ 43-1121 - Additions to Arizona gross income; corporations
§ 43-1122 - Subtractions from Arizona gross income; corporations
§ 43-1123 - Net operating loss; definition
§ 43-1124 - Americans with disabilities act access expenditures
§ 43-1125 - Domestic international sales corporation
§ 43-1126 - Small business corporation; election as to taxable status; return; termination
§ 43-1127 - Deferred exploration expenses
§ 43-1130 - Amortization of the cost of child care facilities
§ 43-1130.01 - Restoration of a substantial amount held under claim of right; computation of tax
§ 43-1331 - Additions to Arizona gross income; estates and trusts
§ 43-1332 - Subtractions from Arizona gross income; estates and trusts
§ 43-1333 - Fiduciary adjustment; allocation of shares
§ 43-1041 - Optional standard deduction
§ 43-1042 - Itemized deductions
§ 43-1071 - Credit for income taxes paid to other states; definitions
§ 43-1072.01 - Credit for increased excise taxes paid
§ 43-1072.02 - Credit for increased transaction privilege or excise tax paid for education
§ 43-1073 - Family income tax credit
§ 43-1073.01 - Dependent tax credit
§ 43-1074 - Credit for new employment
§ 43-1074.01 - Credit for increased research activities
§ 43-1074.02 - Credit for investment in qualified small businesses
§ 43-1075 - Affordable housing tax credit
§ 43-1076.01 - Healthy forest production tax credit; definitions
§ 43-1077 - Credit for entity-level income tax
§ 43-1078 - Credit for Arizona small business excess credit amount
§ 43-1079.01 - Credit for employing national guard members
§ 43-1081.01 - Credit for agricultural pollution control equipment
§ 43-1083 - Credit for solar energy devices
§ 43-1083.02 - Renewable energy production tax credit; definitions
§ 43-1083.03 - Credit for qualified facilities
§ 43-1084 - Credit for agricultural water conservation system
§ 43-1085 - Credit for solar energy devices; commercial and industrial applications
§ 43-1086 - Credit for donation to the military family relief fund subaccounts
§ 43-1088 - Credit for contribution to qualifying charitable organizations; definitions
§ 43-1089 - Credit for contributions to school tuition organization
§ 43-1089.01 - Tax credit; public school fees and contributions; definitions
§ 43-1089.02 - Credit for donation of school site
§ 43-1089.03 - Credit for contributions to certified school tuition organization
§ 43-1741 - Credit for income taxes paid to other states; definitions
§ 43-1742 - Individual income tax credits; applicability
§ 43-1091 - Gross income of a nonresident
§ 43-1092 - Intangible income of a nonresident
§ 43-1093 - Nonresident beneficiary of estate or trust income
§ 43-1094 - Adjusted gross income of a nonresident
§ 43-1095 - Apportionment of deductions
§ 43-1096 - Credit for income taxes paid by nonresident; definitions
§ 43-1097 - Change of residency status
§ 43-1098 - Apportionment of exemptions
§ 43-1099 - Applicability of article
§ 43-1111 - Tax rates for corporations
§ 43-1133 - Taxability in other state
§ 43-1134 - Allocation of nonbusiness income
§ 43-1135 - Net rents and royalties
§ 43-1136 - Capital gains and losses
§ 43-1137 - Interest and dividends
§ 43-1138 - Patent and copyright royalties
§ 43-1139 - Allocation of business income
§ 43-1141 - Valuation of property
§ 43-1142 - Average value of property
§ 43-1144 - Compensation paid in state
§ 43-1146 - Situs of sales of tangible personal property
§ 43-1147 - Situs of sales of other than tangible personal property; definitions
§ 43-1148 - Apportionment by department
§ 43-1151 - Tax clearance upon cessation of corporate activities
§ 43-1152 - Powers of corporation suspended for nonpayment of tax
§ 43-1153 - Certificate of suspension of a corporation
§ 43-1154 - Penalty for exercising powers after suspension
§ 43-1155 - Voidable contracts by corporations
§ 43-1156 - Application for revival of corporate powers
§ 43-1157 - Clearance of revivor by corporation commission
§ 43-1158 - Treatment of installment obligations on cessation of corporate activities
§ 43-1161 - Credit for new employment
§ 43-1162 - Healthy forest production tax credit; definitions
§ 43-1163 - Affordable housing tax credit
§ 43-1164 - Credit for solar energy devices; commercial and industrial applications
§ 43-1164.03 - Renewable energy production tax credit; definitions
§ 43-1164.04 - Credit for qualified facilities
§ 43-1167.01 - Credit for employing national guard members
§ 43-1168 - Credit for increased research activity
§ 43-1170 - Credit for pollution control equipment
§ 43-1175 - Credit for employment of temporary assistance for needy families recipients
§ 43-1178 - Credit for taxes with respect to coal consumed in generating electrical power
§ 43-1181 - Credit for donation of school site
§ 43-1183 - Credit for contributions to school tuition organization
§ 43-1381 - Credit for taxes paid to other state or country
§ 43-1382 - Credit for entity-level income tax
§ 43-1201 - Organizations exempt from tax
§ 43-1202 - Feeder organizations not exempt from tax; definition
§ 43-1212 - Denial of exempt status due to prohibited transactions; restoration of exempt status
§ 43-1231 - Taxation of unrelated business income
§ 43-1241 - Returns of unrelated business income
§ 43-1242 - Information returns of tax-exempt organizations; definition
§ 43-1301 - Definitions; estates and trusts
§ 43-1311 - Tax imposed on estates and trusts; rates; annual adjustment
§ 43-1314 - Charge for estate or trust taxes upon estate or trust
§ 43-1315 - Liability of beneficiaries for trust taxes
§ 43-1361 - Certificate of payment of taxes
§ 43-1362 - Request for certificate
§ 43-1363 - Effect of certificate
§ 43-1364 - Liability of fiduciary for nonpayment of estate or trust taxes
§ 43-1365 - Request for prompt assessment
§ 43-1366 - Notice of fiduciary relationship
§ 43-1411 - Partnership, individual partnership liability
§ 43-1412 - Partner's distributive share
§ 43-1413 - Year in which partnership income is includible
§ 43-1414 - Federal assessment of imputed underpayment; definitions
§ 43-1502 - Certification as a school tuition organization
§ 43-1503 - Operational requirements for school tuition organizations
§ 43-1504 - Special provisions; corporate donations for low-income scholarships; rules
§ 43-1506 - Annual report; posting
§ 43-1507 - Audits and financial reviews
§ 43-1602 - Certification as a school tuition organization
§ 43-1603 - Operational requirements for school tuition organizations; notice; qualified schools
§ 43-1604 - Annual report; posting
§ 43-1605 - Audits and financial reviews
§ 43-1721 - Additions and subtractions to Arizona small business gross income