This bill proposes several updates to the Arizona Revised Statutes, specifically section 41-1512, regarding the definition and classification of manufacturing facilities. The current definition of "facility" will be expanded to include not only a single parcel but also a collection of parcels that operate as an integrated manufacturing site, with specific provisions for both contiguous and noncontiguous supporting parcels. The bill introduces a requirement for documentation to demonstrate that noncontiguous parcels are operationally integrated with the primary manufacturing site. Additionally, the definition of "manufacturing" will be clarified to exclude electricity generation, and a new term, "primary parcel," will be defined to specify the parcel where the majority of manufacturing activities occur.

Furthermore, the bill will introduce the term "supporting parcel," which refers to parcels that materially support manufacturing activities at the primary parcel, encompassing various functions such as warehousing and quality assurance. The act will also establish that these changes apply to taxable years beginning after December 31, 2026. Overall, the bill aims to modernize the definitions and criteria related to manufacturing facilities, enhancing clarity and operational integration within the Arizona commerce framework.

Statutes affected:
Introduced Version: 41-1512