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State of Arizona
Department of Revenue

Renewable Energy Investment and Production for Self-Consumption by Manufacturers and International Operations Centers Tax Credit

An individual or corporate income tax credit is available for taxpayers that invest in new renewable energy facilities in Arizona that generate energy for self-consumption using renewable energy resources. To be eligible to take the income tax credit, a taxpayer must receive preapproval from the Arizona Department of Revenue, start construction within six months, invest $300 million within a three-year period for a manufacturing facility (or $100 million for an international operations center), file an annual report with the department and request final certification 30 days after each facility becomes operational. Furthermore, an international operations center must be certified by the Arizona Commerce Authority and invest at least $1.25 billion on or before the tenth anniversary of certification.

"Renewable energy facility" means a facility in which the taxpayer invested at least $30 million, has at least 20 megawatts generating capacity or a minimum typical annual generation of 40,000 megawatt hours, is located on land in Arizona owned or leased by the taxpayer and that produces electricity using a qualified energy resource.