Arizona Tax Court Partially Grants Motion in Renewable Energy Equipment Valuation Case

The Arizona Tax Court issued a ruling partially granting the taxpayer’s motion for summary judgment in a dispute over the valuation of renewable energy equipment. The case arose when the taxpayer, a solar energy company, reported a significantly lower cost for its equipment following a membership interest sale. The court found that the taxpayer may use the purchase price allocation from the membership interest sale as the “original cost” for calculating the full cash value of the equipment, based on the plain language of A.R.S. § 42-14155(D)(4). However, the court noted that questions of fact still exist regarding the actual ...