This bill proposes updates to section 42-14155 of the Arizona Revised Statutes regarding the valuation of renewable energy and storage equipment. Under the current law, the full cash value of such equipment varies based on ownership and agreements with public service corporations. Specifically, it currently states that equipment owned by or under exclusive agreements with public entities in service before January 1, 2027, is valued at twenty percent of the depreciated cost, while the full cash value for other equipment is based on the depreciated cost.

The bill introduces new provisions that would change the valuation criteria. It would establish that renewable energy and storage equipment not owned by or under exclusive agreements would be valued at one hundred percent of the depreciated cost. Additionally, for equipment owned by or under exclusive agreements that is in service after December 31, 2026, the valuation would also be set at one hundred percent of the depreciated cost. The bill also clarifies the definition of depreciated cost and maintains that depreciation cannot exceed ninety percent of the adjusted original cost.

Statutes affected:
Introduced Version: 42-14155