House of Representatives

HB 2622

sales tax; contractor's solar exemption

Sponsors: Graf, Anderson, Carruthers, et al

DP	Committee on Energy Utilities and Technology
X	Committee on Ways and Means
	Caucus and COW
	As Passed the House

History

In 1991, the Arizona Legislature enacted two transaction privilege tax exemptions applicable to solar energy devices; one was for sales of such devices under the retail classification and the other was for the contractor's cost of the device installed under the prime contracting classification. At the time the exemptions were added, both exemptions were set to expire on December 31, 1996. However, the exemption under the retail classification was later amended to delete the expiration clause. Last year’s HB 2287 (Laws 2000 Chapter 214) reinserted the exemption for prime contractors and made the exemption applicable retroactively to January 1, 1997. HB 2622 amends an existing prime contracting exemption for solar energy devices to provide that both the sale and installation of the solar energy device, limited to a $5,000 deduction per contract, is exempt from the transaction privilege tax under the prime contracting classification.

Provisions

· Provides a transaction privilege tax (TPT) exemption for the gross proceeds or gross income derived from a contract to provide and install a solar device.

· Establishes that the exemption is retroactive to December 31, 1996 and expires on January 1, 2011.

· Limits the exemption to five thousand dollars.

· Makes technical and conforming changes.

HB 2622 passed the Committee on Energy Utilities and Technology unamended.

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45th Legislature

First Regular Session 2 February 22, 2001

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