AZ SB1371

Expands the definition of "facility" for Arizona Commerce Authority qualified facility tax credits to include noncontiguous supporting parcels that are operationally integrated with and materially support manufacturing at a primary parcel.

Establishes that a "primary parcel" is where more than 50% of total manufacturing activities occur, measured by either qualified manufacturing payroll proportion or manufacturing output/value added.

Defines "supporting parcel" as land that materially supports primary parcel manufacturing, including warehousing, preprocessing, subassembly, testing, quality assurance, packaging, distribution, utilities, waste treatment, and related research/development.

Requires applicants seeking to include noncontiguous supporting parcels to provide documentation demonstrating operational integration with the primary manufacturing parcel.

Applies to taxable years beginning from and after December 31, 2026.