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Energy:
solar energy tax incentives

Our Position: support
Bill Number: HB2429
Sponsor: Mason, Boone, Chase et al
Legislative Session: 2006 Legislative Session

HB2429 solar energy tax incentives (Mason, Boone, Chase, et al) establishes commercial solar tax credits that allow a 10% credit for the installation of solar energy devices for commercial or industrial purposes in a trade or business located in Arizona, which is limited at $25,000 with respect to the same building annually and $50,000 annually per company.  There bill will be amended on the floor to establish  an annual cap of $1.5 million on the commercial tax credit. The bill also changes the law so the value of solar systems will not be added to property tax valuation.  The $1 million made it into the proposed budgets, but as neither has gone anywhere, it is hard to tell what is going to happen to this bill.

Status

The bill was pared down, but it is still worth supporting.

Action Needed

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Background

Solar energy is so abundant that the sunlight the Earth receives in 30 minutes is equivalent to all the power used by humankind in one year. When appropriately sited, solar energy creates no pollution and is the most environmentally friendly source of power currently available. It is already used by 200,000 homes in the United States. One system that converts solar energy into heat - and is used to heat the buildings of Ford, General Motors and Federal Express - is already saving about $400,000 per year in avoided fuel costs, and reducing annual carbon dioxide emissions by 10 million pounds.

Arizona is one of the fastest growing states in the United States.  Most of our electricity is generated from coal and nuclear, but there is also significant dependency on natural gas.   With the enormous growth in population, we will see more and more pollution, more power lines and power plants, unless we focus on energy efficiency and renewable energy sources to generate power.  If we are to protect air quality, limit climate change, and provide a more secure future for our children, it is critical that Arizona look to its largest energy resource, the sun.