sales tax; contractor's
solar exemption
DPA |
Committee on Energy Utilities and Technology |
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Committee on Ways and Means |
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Caucus and COW |
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Third Read |
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As Passed the House |
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HB 2457 clarifies the current Transaction Privilege Tax (TPT) exemption for the installation of solar devices by contractors.
Amended in the Committee on Energy Utilities and Technology by changing the sunset date for the TPT exemption for solar contractors, from January 1, 2011, to December 31, 2003.
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, they were set to expire on December 31, 1996. However, the exemption under the retail classification was later amended to delete the expiration clause.
Laws 2000, Chapter 214, reinserted the exemption for the contractor’s retail cost of the device, and made the exemption applicable retroactively to January 1, 1997, with a sunset date of January 1, 2011 (the law did not include an exemption for the cost of installation of the device). Thus, HB 2457 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.