Arizona

Pause on new data-center tax-relief applications

Enacted legislation or regulation

In effect

Scope

Section 31 of Arizona Laws 2026, Chapter 140, says that notwithstanding any other law, from 1 July 2026 through 30 June 2029, the Arizona Commerce Authority may not accept applications for any new computer data center under Arizona Revised Statutes section 41-1519, and no new computer data centers qualify for tax relief under that section. The section applies retroactively from and after 30 June 2026 and is repealed from and after 30 June 2029. The section heading uses the word moratorium. The opened text does not say that a center already certified under section 41-1519 loses its qualification period, and it does not pause a building permit or a utility interconnection.

Dates

Effective
1 July 2026
Scheduled expiration
30 June 2029
Completion condition
The operative sentence runs through 30 June 2029. The section says it is repealed from and after 30 June 2029.
Source document
13 June 2026
Last checked
22 September 2026
Issuing authority
Arizona Legislature

Summary

Arizona Laws 2026, Chapter 140, is the chaptered text of House Bill 4168 from the Fifty-seventh Legislature, Second Regular Session. The chapter text says the governor approved the act and it was filed with the Secretary of State on 13 June 2026. Section 31 says that from 1 July 2026 through 30 June 2029 the Arizona Commerce Authority may not accept applications for a new computer data center under section 41-1519, and that no new computer data center qualifies for that section's tax relief during the same period. The section heading calls this a moratorium. On 22 September 2026 that window had started and had not reached 30 June 2029. The section does not repeal section 41-1519, and it does not say an existing certification is cancelled. It is not a construction or operating prohibition.

What this does not establish

  • Chapter 140 is an omnibus tax act. This record is section 31 only. Other sections of the act are not recorded.
  • The notwithstanding clause limits new applications and new qualification. It is not recorded as superseding section 41-1519 for a center that was already certified.
  • "From and after 30 June 2026" is the retroactivity phrase in the section. The operative start stated in subsection A is 1 July 2026.
  • The section heading uses moratorium for this application pause. That word is not a finding that Arizona prohibits data centers.
  • The chapter text ends with "Approved by the Governor June 13, 2026" and "Filed in the Office of the Secretary of State June 13, 2026." That approval and filing day is stored as the document date. It is not the operative start: section 31 runs from 1 July 2026 through 30 June 2029.

Unresolved questions

  • Whether an application filed before 1 July 2026 but not yet approved can still be granted was not stated in section 31.

Relationships

Supersession means a later instrument replaces the earlier legal effect. A later implementation or a related letter is not treated as a replacement unless the record says so.

Sources

Primary source

https://www.azleg.gov/legtext/57leg/2r/laws/0140.htm

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