AZ HB4116

Exempts machinery and equipment used for residential, industrial, or commercial energy storage (batteries) from Arizona's transaction privilege tax (TPT) and use tax through December 31, 2031

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

Applies to storage systems serving single-family or multifamily residences, industrial facilities, or commercial businesses

Amends Arizona Revised Statutes sections 42-5061 (retail classification TPT) and 42-5159 (use tax exemptions) to add the battery storage exemption

Introduced by Representative Cavero during the 57th Legislature, Second Regular Session (2026)