AZ SB1721

Establishes a $100,000 threshold per residential unit and $1,000,000 threshold for nonresidential projects below which construction contracts are exempt from transaction privilege tax (TPT).

Exempts contracts that primarily involve construction of electricity generating facilities or renewable energy systems from TPT, including maintenance and repair of existing facilities.

Adds coal sales exemption to the retail classification and municipal TPT exemptions.

Extends TPT exemptions for qualifying forest products businesses through June 30, 2024 and clarifies prime contracting classification definitions and procedures.

Provides retroactive applicability and hold harmless provisions for contracts entered into between December 31, 2014 and June 30, 2021 regarding taxability determinations.