AZ HB2617

Adds energy storage equipment to renewable energy incentive districts in cities, towns, and counties, allowing governments to designate areas suitable for renewable energy and storage equipment development with expedited permitting and fee waivers.

Exempts machinery and equipment used directly for energy storage for later electrical use from transaction privilege tax at both state and local levels, with definitions specifying electric utility scale storage using mechanical, chemical, or thermal processes.

Extends renewable energy equipment valuation provisions through December 31, 2040, applying the 20 percent full cash value calculation to both colocated and stand-alone energy storage equipment at electric utility scale.

Modifies tax code references throughout to include "coal" as an exempt sale and adjusts numbering of various tax classifications to accommodate new energy storage provisions.

Makes certain amendments conditional upon the occurrence of conditions prescribed in Laws 2018, chapter 263, section 5.