Tucson Electric Power Co. v. Arizona State Department of Revenue

OPINION

MORONEY, Judge.

The Taxpayer is a public utility which supplies electrical power to consumers in a service area which includes the City of Tucson. A portion of the power which the Taxpayer supplies to its customers is generated from generating stations located in northwestern New Mexico. In 1979, 1980, and 1981, the Taxpayer placed in service pollution control devices at its generating stations in New Mexico.

A.R.S. § 43-1030 provides an income tax benefit for taxpayers which install devices *142that control atmospheric and water pollutants. The statute permits the taxpayer to elect an…