AZ HB2153

Expands renewable energy incentive districts in cities, towns, and counties to include both renewable energy and energy storage equipment in their designation and incentive planning.

Establishes tax deductions and exemptions for machinery and equipment used directly for energy storage at electric utility scale, applicable under retail, use tax, prime contracting, and municipal tax classifications.

Defines "energy storage" as commercially available technology for electric utility scale capable of absorbing, storing, and dispatching energy using mechanical, chemical, or thermal processes.

Applies the renewable energy equipment valuation method (20 percent of depreciated cost) to energy storage equipment through December 31, 2040, including both colocated and stand-alone storage systems.

Amends multiple sections of Arizona tax code to provide consistent treatment of renewable energy storage equipment across state and local transaction privilege and use taxes.