SB 1322
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
Senate: FIN DP 8-1-1-0 | 3
rd
Read 26-2-2-0
House: WM DPA 6-4-0-0
SB 1322: charitable organization tax credit; inflation
S/E: TPT; use tax; hydrogen; exemption
Sponsor: Senator Shope, LD 8
Caucus & COW
Summary of the Strike-Everything Amendment to SB 1322
Overview
Exempts, from use tax and the transaction privilege tax (TPT), the sale, storage, use or
consumption of hydrogen used to propel a motor vehicle, pipes or valves used to transmit
hydrogen and machinery or equipment employed in connection with producing or transmitting
hydrogen. Exempts, from use tax and TPT, hydrogen sold to a qualified environmental technology
manufacturer, producer or processor, subject to statutory requirements.
History
Current use tax and TPT exemptions exist for the following:
1. sales of natural gas and liquefied petroleum gas used to propel a motor vehicle;
2. petroleum, coke, natural gas, virgin fuel oil and electricity sold to a qualified environmental
technology manufacturer, producer or processor;
3. pipes or valves four inches in diameter or larger used to transport oil, natural gas, artificial
gas, water or coal slurry, including compressor units, regulators, machinery and
equipment, fittings, seals and any other part that is used in operating the pipes or valves;
and
4. machinery or equipment, including related structural components and containment
structures, that is employed in connection with manufacturing, processing, fabricating, job
printing, refining, mining, natural gas pipelines or metallurgical operations (ARS § 42-
5061).
Provisions
1. Exempts, from TPT, the gross proceeds or gross income derived from the sale of:
a) hydrogen used to propel a motor vehicle; and
b) hydrogen sold to a qualified environmental technology manufacturer, producer or
processor that is directly used in generating or providing on-site power solely for
environmental technology manufacturing, producing or processing or environmental
protection. (Sec. 1, 2)
2. Requires, to be deducted from the tax base for the retail classification of TPT, the gross
proceeds of sales and gross income derived from sales of:
a) pipes or valves four inches or larger in diameter used to transport hydrogen; and
b) machinery or equipment employed in connection with producing or transmitting hydrogen
that is used directly to meet or exceed outlined federal and state rules and regulations.
(Sec. 1, 2) SB 1322
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3. Exempts, from use tax, the storage, use or consumption of:
a) Hydrogen used to propel a motor vehicle;
b) hydrogen purchased by a qualified environmental technology manufacturer, producer or
processor that is directly used in generating or providing on-site power solely for
environmental technology manufacturing, producing or processing or environmental
protection;
c) pipes or valve four inches in diameter or larger used to transport hydrogen; and
d) machinery or equipment employed in connection with producing or transmitting hydrogen
that is used directly to meet or exceed outlined federal and state rules and regulations.
(Sec. 3)
4. Contains an applicability clause. (Sec. 4)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note