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2020 Credit for Renewable Energy Investment and
Production for Self-Consumption by Arizona Form
International Operations Centers 351
For information or help, call one of the numbers listed: • The energy produced must be used for self-
Phoenix (602) 255-3381 consumption
•
From area codes 520 and 928, toll-free (800) 352-4090 By the fifth year the facility is in operation, at least 51
percent of the energy produced must be used for self-
Tax forms, instructions, and other tax information
consumption in Arizona.
If you need tax forms, instructions, and other tax information, go
to the department’s website atwww.azdor.gov. NOTE: A taxpayer that is initially authorized as an
Income Tax Procedures and Rulings International Operations Center after December 31, 2018 may
These instructions may refer to the department’s income tax not claim this tax credit.
procedures and rulings for more information. To view or print This credit is available to corporate taxpayers, exempt
these, go to our website and click on Reports & Legal Research organizations subject to unrelated business taxable income
then click on Legal Research and select a Document Type and (UBTI), and corporate partners in a partnership. The total of the
Category from the drop down menus. credits may not exceed the amount that would have been
Publications allowed for a sole owner of the business.
To view or print the department’s publications, go to our website If the current taxable year's credit exceeds the taxpayer’s tax
and click on Reports & Legal Research. Then click on liability for the taxable year, the taxpayer may carry forward the
Publications. unused credit to the next five consecutive taxable years. No
credit, other than carryovers generated properly, may be claimed
for any taxable year beginning after December 31, 2025.
General Information
This credit provides nonrefundable corporate income tax credits Credit Recapture
for investment in new renewable energy facilities that produce
energy for self-consumption using renewable energy resources if If an IOC taxpayer fails to make the $1.25 billion investment in
the power will be used primarily for an International Operations the center within the 10 years after certification, this credit is
Centers. The credit authorized is $5 million per year for five recaptured in inverse proportion to the total capital investment
years. The initial credit is claimed in the year the facility made in the IOC by the $1.25 billion. The recapture must be
becomes operational. made on the taxpayer's income tax return for the taxable year in
which it is first known that the required investment would not be
NOTE: For taxable years beginning from and after December made within the required time or the taxable year in which the
31, 2018, this credit is no longer available to individual certification was revoked.
taxpayers. It is available only to corporate taxpayers.
Example:
Claiming this Credit Ten years after its certification, an IOC taxpayer invested $900
To claim this credit, a taxpayer must apply to the Arizona million in its center and claimed $25 million for this credit
Department of Revenue (Department) for certification. The ($5,000,000 per year for 5 years.) The IOC taxpayer will
department reviews and pre-approves the taxpayer for the credit determine its credit recapture by subtracting its total investment
on a first-come, first-served basis. The maximum amount of this ($900 million) from the required investment ($1.25 billion) and
credit a taxpayer can receive is $5,000,000 per tax year. The dividing that amount by the required investment.
department may not authorize tax credits under A.R.S. § IOC taxpayer invests $900 million in 10 years.
43-1164.05 that exceed, in the aggregate, a total of $10 million
for any calendar year. Required investment amount is $1.25 billion.
The taxpayer must submit a request for final certification to the Required Investment $1,250,000,000
department within 30 days after the renewable energy facility for Total Investment $ 900,000,000
which authorization was given becomes operational. See the Amount not invested $ 350,000,000
program guidelines at www.azdor.gov under the “Tax Credits”
Amount not invested $ 350,000,000
section.
Required Investment $1,250,000,000
The taxpayer must qualify for this credit as an International
Percentage not invested 28%
Operations Center (IOC).
Calculate Credit Recapture
To qualify, a taxpayer must:
Total Credit Claimed $25,000,000
• Invest at least $100 million in one or more renewable
Percentage (above) 28%
energy facilities in Arizona.
Amount to Recapture $ 7,000,000
• The minimum investment of $100 million must be
completed within a 3-year period beginning on the date The IOC taxpayer will report a credit recapture on its income tax
the initial application is received by the department or return of $7 million.
by December 31, 2030, whichever is earlier.
• Invest $1.25 billion in the IOC within 10 years after
being certified by the Arizona Commerce Authority
(ACA).
