By Phil Riske, managing editor | Rose Law Group Reporter
STATE CAPITOL — Its sponsor saying renewable energy is the best source of economic development in Arizona, a bill providing tax incentives for renewable energy facilities was cleared for third reading Thursday in the state House.
After passage, it will go back to the Senate for approval of amendments.
SB 1484 establishes an individual and corporate income tax credit for investments of at least $300 million in a three-year period in new renewable energy facilities that produce energy for self-consumption using renewable energy resources if the power would be used primarily for manufacturing.
“These industries are most potent” in driving state’s economy,” said the bill’s sponsor, Sen. Bob Worsley, R-Mesa. “This is a way to attract a different breed of clientele.”
The credit is $1 million per year for five years for each renewable energy facility, and the maximum credit allowed per taxpayer per year is $5 million.
Also cleared for 3rd reading Thursday was SB 1413, which states tax base deductions for the utilities classification is expanded to include gross proceeds of sales or gross income derived from sales of electricity to a business that is “principally engaged” in “manufacturing” or “smelting” operations that uses at least 51 percent of the electricity in the manufacturing or smelting operations.
It too will return to the Senate after passage because of a minor House amendment.
