HB 4168 (Arizona, 2026): taxation omnibus pausing new data center tax-exemption applications, July 1, 2026 to June 30, 2029

Laws 2026, Chapter 140, signed by Gov. Katie Hobbs on June 13, 2026 as part of the FY2027 budget (substituted for SB 1861). Bars the Arizona Commerce Authority from accepting new applications for the computer data center transaction privilege and use tax exemption (A.R.S. 41-1519) from July 1, 2026 through June 30, 2029; existing certifications continue. Hobbs had proposed repealing the exemption, which the Department of Revenue put at $38.5 million in FY2025. Prime sponsor Rep. David Livingston (Appropriations chair); co-sponsors Carbone, Carter, Montenegro, Willoughby. House third reading 47-11 and Senate third reading 23-5, both June 11, 2026. Axios Phoenix reported on July 8, 2026 that the Commerce Authority received 113 applications between June 15 and June 30, 2026, before the freeze took effect (an agency count reported by the press; the Department of Revenue has not published one).

HB 4168