By Phil Riske, managing editor | Rose Law Group Reporter
STATE CAPITOL — A House committee on Monday advanced a bill that would change the Arizona Department of Revenue’s formula for taxing utility-scale energy projects.
The bill (HB 2358) would affect only a half-dozen renewable energy companies — those that have received federal cash grants or incentives. The Department of Revenue says the assessed valuation of those companies should include the amounts of federal contributions, which would increase their property taxes and affect depreciation rates.
Representing a solar and a wind power company, lobbyist Stan Barnes of Copper State Communications told the House Energy, Environment & Natural Resources Committee the Department of Revenue “went outside the statute” regarding taxation of non-centrally-assessed energy companies by including federal contributions as part of assessed valuation.
“None of these [companies] were figuring on that,” Barnes said. “Our clients don’t get to depreciate that big value; they only depreciate their investment.”
The committee voted 8-0 to forward the bill, but Rep. Bob Thorpe (R-Flagstaff) said he thought it might be another case of the government “picking winners and losers.”
“Government chooses more losers than winners,” Thorpe said.
Barnes acknowledged renewable energy is treated more favorably by the tax man, but said the bill does not sweeten the pot for them. He noted energy companies not affected by the bill are not opposing it.
“It is keeping what we thought we already had,” he said.
The Department of Revenue did not provide a witness.
