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HB2915 • 2026

tax reduction fund; renewable energy

HB2915 - tax reduction fund; renewable energy

Energy Land Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
David Marshall, Sr., Ralph Heap
Last action
2026-01-29
Official status
House second read
Effective date
Not listed

Plain English Breakdown

The exact distance for eligibility is not specified in the bill, leaving room for interpretation or future clarification.

Tax Reduction Fund for Renewable Energy

This bill requires county boards to establish tax reduction funds for residential properties near large-scale renewable energy facilities, with specific rules on fund management and distribution.

What This Bill Does

  • Requires a county Board of Supervisors (BOS) to establish a residential property tax reduction fund for each new large-scale renewable energy facility in their area after all zoning elements are approved.
  • Directs the county treasurer to manage and distribute money from these funds according to methods chosen by local government, ensuring most goes towards reducing property taxes.
  • Limits how much money can be taken out of the fund annually for administrative costs to 10% or less.
  • Specifies that property tax reductions are based on a method approved by the BOS, such as equal distribution or proportional share.

Who It Names or Affects

  • Homeowners near large renewable energy facilities in Arizona.
  • County boards of supervisors who must establish these funds.
  • County treasurers responsible for managing and distributing the funds.

Terms To Know

Property value reducing renewable energy facility
A wind or solar power plant that meets certain size and operational criteria, excluding rooftop systems.
Eligible residential property
A home within a specific zoning area from the renewable energy facility that is zoned for residential use.

Limits and Unknowns

  • The bill does not specify how far away a home must be to qualify as an eligible residential property.
  • It's unclear what happens if there are no eligible properties near a new facility.
  • The exact amount of tax reduction is determined by local government decisions.

Bill History

  1. 2026-01-29 House

    House second read

  2. 2026-01-28 House

    House Rules: None

  3. 2026-01-28 House

    House Natural Resources, Energy & Water: HELD

  4. 2026-01-28 House

    House Ways & Means: W/D

  5. 2026-01-28 House

    House first read

Official Summary Text

HB2915 - 572R - House Bill Summary

ARIZONA HOUSE OF REPRESENTATIVES

57th
Legislature, 2nd Regular Session

Majority Research Staff

HB
2915
: tax reduction fund; renewable energy

Sponsor:
Representative Marshall, LD 7

Committee
on Natural Resources, Energy & Water

Overview

Requires
a county Board of Supervisors (BOS) establish residential property tax
reduction funds for each property value reducing renewable energy facility
located in a county and outlines duties of the county treasurer and BOS in
implementing and distributing the funds.

History

The county board of supervisors (BOS) in a county regulates
the subdivision of all lands within its corporation limits, excluding any
subdivisions that are regulated by municipalities (
A.R.S. � 11-821
).

The county treasurer must keep all money belonging to the
state, or to the county, in his possession until disbursed according to law. He
may not place it in the possession of any person to be used for any purpose, or
lend, or in any manner use, or permit any person to use, such money except as
provided by law (
A.R.S. � 11-491
).

Provisions

1.

Requires a
BOS, on approval of all zoning elements for a property value reducing renewable
energy facility (Facility), establish a residential property tax reduction fund
(Fund) for each Facility located in that county. (Sec. 1)

2.

Directs the
county treasurer to administer each Fund. (Sec. 1)

3.

Mandates the
county treasurer distribute monies in each Fund, according to the BOS-approved
distribution method, to each eligible residential property located within the
eligible distance of the Facility (Property). (Sec. 1)

4.

Requires the
county treasurer, before December 2 of each year, deposit in each Fund a
portion of the real and personal property tax revenues collected from each Property.
(Sec. 1)

5.

Stipulates
the amount of real and personal property tax revenues deposited in the Fund
must be 50% of the difference of the assessed value of the Facility and the
assessed value of the Property after the construction of the Facility. (Sec. 1)

6.

Requires the
county treasurer to use not more than 10% of the monies deposited in each Fund
annually to administer the Fund. (Sec. 1)

7.

Directs the
county treasurer to determine the total amount of monies remaining in each Fund,
after the monies to administer the Fund are used, and distribute those monies
to each Property owner to reduce annual real and personal property tax
according to the distribution method approved by the BOS. (Sec. 1)

8.

Outlines
different eligible methods a BOS may approve for Fund distribution and requires
a BOS adopt one of the outlined methods. (Sec. 1)

9.

Stipulates
an adopted Fund distribution method must be consistently applied by a BOS for
all cases requiring Fund distribution in the county in which it was adopted.
(Sec. 1)

10.

Prohibits
the county treasurer from distributing monies to Property owners in excess of
an owners outstanding property tax balance or due property tax. (Sec. 1)

11.

Requires the
county treasurer to distribute the maximum amount allowable to a Property owner
if their Property's distribution exceeds the total amount allowable and
proportionally distribute the excess to all other Properties. (Sec. 1)

12.

Prohibits
the county treasurer from:

a.

moving,
transferring or commingling monies between Funds; or

b.

depositing
monies from the Fund in the County General Fund or any other unauthorized
account. (Sec. 1)

13.

Prohibits a
BOS that has established a Fund from using, withdrawing or transferring, or
directing any person to use, withdraw or transfer, monies from a Fund for
unauthorized purposes. (Sec. 1)

14.

Defines
pertinent terms. (Sec. 1)

15.

16.

17.

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18.

Initials CW/RS��������������� HB
2915

19.

2/12/2026� Page 0 Natural
Resources, Energy & Water

20.

21.

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Current Bill Text

Read the full stored bill text
HB2915 - 572R - I Ver

REFERENCE TITLE:
tax reduction fund; renewable energy

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2915

Introduced by

Representatives
Marshall: Heap

AN
ACT

amending title 11, chapter 2, article 4,
arizona revised statutes, by adding section 11-269.31; relating to
property taxes.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 11, chapter 2, article 4,
Arizona Revised Statutes, is amended by adding section 11-269.31, to read:

START_STATUTE
11-269.31.

Residential property tax reduction fund; property value reducing
renewable energy facility; administration; calculation; distribution;
definitions

A. On approval of all zoning elements
for a property value reducing renewable energy facility, the board of
supervisors of the county in which the property value reducing renewable energy
facility is located shall establish a residential property tax reduction fund
for each property value reducing renewable energy facility located in that
county. The county treasurer shall administer each fund.� The county
treasurer shall distribute monies in each fund pursuant to subsection D of this
section to each eligible residential property that is located within the
eligible distance of the property value reducing renewable energy facility.�

B. On or before december 1 of each
year, the county treasurer shall deposit in each fund established pursuant to
subsection A of this section a portion of the real and personal property tax
revenues collected from each eligible residential property that is located
within the eligible distance of the property value reducing renewable energy
facility. The amount of real and personal property tax revenues
collected from each eligible residential property located within the eligible
distance from the property value reducing renewable energy facility and
deposited in the fund shall be fifty percent of the DIFFERENCE of the assessed
value of the eligible residential property before the construction of the
property value reducing renewable energy facility and the assessed value of the
eligible residential property after the construction of the property value
reducing renewable energy facility.

C. The county treasurer may use Not
more than ten percent of the monies deposited in each fund annually to
administer the fund. the county treasurer shall determine the total
amount of monies remaining in each fund after the monies to administer the fund
are used and distribute those monies to each eligible residential property
owner to reduce the annual real and personal property tax for the eligible
residential property that is located within the eligible distance of the
property value reducing renewable energy facility pursuant to the distribution
method approved by the board of supervisors pursuant to subsection D of this
section.

D. On or before September 1 of each
year, the board of supervisors shall approve one of the following methods to
distribute the remaining monies for each fund to each eligible residential
property owner:

1. Distribution in an equal amount to
each eligible residential property based on the total number of eligible
residential properties located within the eligible distance of the property
value reducing renewable energy facility.

2. Distribution In a proportional
amount to each eligible residential property based on each eligible residential
property's proportional share of the total assessed value of all eligible
residential properties located within the eligible distance of the property
value reducing renewable energy facility.

3. Distribution In a proportional
amount to each eligible residential property based on each eligible residential
property's proportional share of the total number of acres of all eligible
residential properties located within the eligible distance of the property
value reducing renewable energy facility.

4. Distribution In a fixed amount to
each eligible residential property owner as determined by the board of
supervisors.

5. Distribution In another equitable
and nondiscriminatory amount, or using another equitable and nondiscriminatory
method, to the owner of each eligible residential property located within the
eligible distance of the property value reducing renewable energy facility as
determined by the board of supervisors.

E. The distribution method that the
board of supervisors approves pursuant to subsection D of this section shall be
the same as each fund that is established for each property value reducing
renewable energy facility located in that county.

F. Notwithstanding subsection c of
this section, the amount of monies the county treasurer distributes to each
eligible residential property owner may not exceed the amount of real or
personal property tax due or outstanding real or personal property tax balance
for the eligible residential property, whichever is greater. If an
eligible residential property's distribution exceeds the total amount allowable
under this subsection, the county treasurer shall distribute the maximum amount
allowed under this subsection to that eligible residential property owner and
proportionally distribute the excess to all of the other eligible residential
properties located within the eligible distance of the property value reducing
renewable energy facility.

G. Except as provided in subsection F
of this section, A county treasurer may not move, transfer or comingle monies
between funds and may not deposit any monies from a fund in the county general
fund or any other account or location not authorized by this section.

H. The board of supervisors of a
county that has established a fund pursuant to this section may not use,
withdraw or transfer, or direct any person to use, withdraw or transfer, monies
from a fund established pursuant to this section for any purpose not authorized
by this section.�

I. For the purposes of this section:

1. "eligible distance"
means either of the following:

(
a
) If the
property value reducing renewable energy facility is located in an
unincorporated area of a county, the zoning area as defined in section 11-814.

(
b
) If the
property value reducing renewable energy facility is located in a city or town,
the zoning area as defined in section 9-462.04.

2. "eligible residential
property" means a tax parcel that is located within the county zoned as a
residential area and that is subject to property tax.

3. "eligible residential
property owner" means the owner of an eligible residential property as
shown on the last assessment of the eligible residential property.

4. "Property value reducing
renewable energy facility":

(
a
) Means a
wind or solar electric generating facility or project that meets all of the
following:

(
i
) Has an
aggregate nameplate rating of one hundred megawatts or more.

(
ii
) Has not
received all zoning entitlements before the effective date of this section.

(
iii
) Does not
produce power solely for on-site use.

(
b
) Does not
include a rooftop solar system.
END_STATUTE