sales tax; contractor's
solar exemption
DP |
Committee on Energy Utilities and Technology |
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DPA |
Committee on Ways and Means |
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X |
Caucus and COW |
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As Passed the House |
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Clarifies the current Transaction Privilege Tax (TPT) exemption for the installation of solar devices by contractors.
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 with a sunset date of January 1, 2011. HB 2622 amends the existing prime contracting exemption for solar energy devices to clarify 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.