shall be exempt
or deductible, respectively, from the tax imposed by this Section.
(4) The gross
proceeds of sales or gross income that is derived from a contract
entered into for the installation, assembly, repair or maintenance
of income-producing capital equipment, as defined in Section ___-110,
that is deducted from the retail classification pursuant to Section
___-465(g), that does
not become a permanent attachment to a building, highway, road,
railroad, excavation or manufactured building or other structure,
project, development or improvement shall be exempt from the tax
imposed by this Section. If the ownership of the realty is separate
from the ownership of the income-producing capital equipment, the
determination as to permanent attachment shall be made as if the
ownership was the same. The deduction provided in this paragraph
does not include gross proceeds of sales or gross income from that
portion of any contracting activity which consists of the development
of, or modification to, real property in order to facilitate the
installation, assembly, repair, maintenance or removal of the income-producing
capital equipment. For purposes of this paragraph, "permanent attachment"
means at least one of the following:
(A) to be
incorporated into real property.
(B) to become
so affixed to real property that it becomes part of the real property.
(C) to be
so attached to real property that removal would cause substantial
damage to the real property from which it is removed.
(5) The gross
proceeds of sales or gross income received from a contract for the
construction of an environmentally controlled facility for the raising
of poultry for the production of eggs and the sorting, or cooling
and packaging of eggs shall be exempt from the tax imposed under
this Section.
(6) The gross
proceeds of sales or gross income that is derived from the installation,
assembly, repair or maintenance of cleanrooms that are deducted
from the tax base of the retail classification pursuant to Section
___-465, subsection (g) shall be exempt from the tax imposed under
this Section.
(7) The gross
proceeds of sales or gross income that is derived from a contract
entered into with a person who is engaged in the commercial production
of livestock, livestock products or agricultural, horticultural,
viticultural or floricultural crops or products in this State for
the construction, alteration, repair, improvement, movement, wrecking
or demolition or addition to or subtraction from any building, highway,
road, excavation, manufactured building or other structure, project,
development or improvement used directly and primarily to prevent,
monitor, control or reduce air, water or land pollution shall be
exempt from the tax imposed under this Section.
(8) The gross
proceeds of sales or gross income received from a post construction
contract to perform post-construction treatment of real property
for termite and general pest control, including wood destroying
organisms, shall be exempt from tax imposed under this section.
(9) Through December 31, 2009, the gross proceeds of sales or gross income received from a contract
for constructing any lake facility development in a commercial enhancement reuse district that is designated pursuant to A.R.S. § 9-499.08 if the
contractor maintains the following records in a form satisfactory to the Arizona Department of Revenue and to the City:
(A) The certificate of qualification of the lake facility development issued by the City pursuant
to A.R.S. § 9-499.08, subsection D.
(B) All state and local transaction privilege tax returns for the period of time during which the
contractor received gross proceeds of sales or gross income from a contract to construct a lake facility development in a designated commercial
enhancement reuse district, showing the amount exempted from state and local taxation.
(C) Any other information considered to be necessary.
(10) Development or impact fees included in a construction or development contract for payment to the
state or local government to offset governmental costs of providing public infrastructure, public safety and other public services to a development.
(11) For taxable periods beginning from and after July 1, 2008 and ending before January 1, 2011, the gross proceeds of sales or gross income derived
from a contract to provide and install a solar energy device. The contractor shall register with the department of revenue as a solar energy
contractor. By registering, the contractor acknowledges that it will make its books and records relating to sales of solar energy devices available to
the department of revenue and the city, as applicable, for examination.
