State Representative David Marshall has introduced two bills, HB 2918 and HB 2915, aimed at changing how renewable energy projects are taxed in Arizona. The legislation seeks to ensure that large-scale renewable energy projects like wind and solar pay their fair share of local property taxes and compensate residents affected by visual impacts and reduced property values.
HB 2918 proposes the elimination of the current property tax subsidy for new renewable energy projects, aligning their assessed values with other properties in a county. Presently, these projects are assessed at only twenty percent of their depreciated value, which gives them an advantage over other generation resources. This preferential treatment results in less contribution to local services such as schools and law enforcement. The bill also targets existing projects not contracted with or owned by regulated utilities or public power entities.
HB 2915 mandates that fifty percent of new property taxes from renewable energy projects be distributed to residents living within three hundred feet of a project. This distribution would reduce residents’ annual property tax bills, acknowledging potential reductions in nearby property values. Local county boards would determine the methodology for allocating these reductions.
In 2024, a similar proposal called the “solar royalties bill” was introduced but did not advance due to opposition from the renewable energy lobby. Unlike that proposal, HB 2915 offers compensation through property tax reductions without imposing additional taxes or royalties beyond those required under local law.
Representative Marshall said, “After benefiting from massive tax breaks for years, the renewable energy industry has done little to improve the reliability or affordability of the grid.” He criticized the lack of action on repealing incentives for the renewable energy industry compared to other sectors.
David Marshall is a Republican member of the Arizona House representing Legislative District 7, covering Pinal, Gila, Coconino, and Navajo Counties. He was elected in 2023 after replacing Jasmine Blackwater-Nygren as state representative for Arizona’s 7th House District.
