AZ HB2860

Creates new section 42-5032.03 establishing a distribution program for water conservation infrastructure improvements related to economic development, mirroring the existing manufacturing facility infrastructure program in section 42-5032.02.

Allows cities, towns, or counties to receive state transaction privilege tax revenues (up to $200 million total) for water conservation infrastructure improvements benefiting manufacturing facilities through September 30, 2033.

Requires manufacturing facilities to make certified capital investments of at least $500 million (in counties with 800,000+ population) or $50 million (in smaller counties) to qualify for the program.

Permits a single agreement to satisfy requirements for both public infrastructure improvements under 42-5032.02 and water conservation infrastructure improvements under 42-5032.03.

Defines "water conservation infrastructure" as wastewater reclamation, recycling, treatment, storage, or delivery facilities supporting one or more manufacturing facilities, with combined infrastructure caps not exceeding $200 million for each category.