Representative Marshall has introduced two bills aimed at changing how renewable energy projects are taxed and how local residents are compensated. HB 2918 proposes to end the current property tax subsidy for new renewable energy projects in Arizona, requiring that their assessed values be determined like other properties in the county. Currently, these projects are assessed at only twenty percent of their depreciated value, which supporters of the bill argue gives them an unfair advantage over other types of power generation and reduces their contribution to local services such as schools and emergency services.
The proposed legislation would also apply to existing renewable energy projects unless they have contracts with or are owned by regulated utilities or public power entities. This provision is intended to prevent increased costs from being passed on to Arizona ratepayers.
A second bill, HB 2915, would require county treasurers to allocate fifty percent of all new property taxes collected from new renewable energy projects directly to residents living within three hundred feet of those projects. This compensation would take the form of a reduction in annual property tax bills for affected homeowners, addressing concerns that large-scale renewable energy installations can lower nearby property values.
Local county boards would have authority over how these reductions are distributed among affected property owners, whether by parcel, acreage, or assessed value.
In 2024, lawmakers considered a similar measure called the “solar royalties bill,” which sought to impose a royalty on utility-scale solar projects and distribute proceeds directly to residents. That proposal did not move forward due to opposition from industry groups. The current approach provides direct compensation through reduced property taxes rather than imposing additional taxes or royalties.
Supporters say the combined effect of these bills will increase rural county revenues while compensating residents impacted by nearby renewable energy developments without introducing new fees for the industry.
“After benefiting from massive tax breaks for years, the renewable energy industry has done little to improve the reliability or affordability of the grid, while costing state and local governments millions in lost revenue and producing few long-term jobs,” said Representative Marshall. “While the Governor and Democrats talk about repealing tax breaks for industries like data centers, they have said nothing about repealing the substantial incentives enjoyed by the renewable energy industry. It’s time these projects pay their fair share and give back to the communities they affect.”
Carbone was elected as a Republican representative for Arizona’s 25th House District in 2023 after replacing Michelle Udall.
