AZ SB1142

Establishes income tax credits for taxpayers holding title to qualified energy generators that first produce electricity between January 1, 2011 and December 31, 2020, allowing credits for ten consecutive calendar years beginning when the generator produces commercially marketable electricity.

Sets credit amounts at 1 cent per kilowatt-hour for wind and biomass (up to 200,000 megawatt-hours annually), and declining rates from 4 cents to 1 cent per kilowatt-hour over ten years for solar light and solar heat resources.

Requires qualified energy generators to have at least 10 megawatts capacity, be located on state land owned or leased by the taxpayer, and be located more than one mile from existing qualified generators; must sell electricity to unrelated entities.

Limits credits to $2 million per facility per calendar year and caps total authorized credits at $20 million statewide annually on a first-come, first-served basis, with applications accepted January 2-31 each year.

Allows unused credits to carry forward for up to five consecutive taxable years; permits co-owners to claim pro rata shares of credits based on ownership interest.