In a 3-2 party line vote, an Arizona Senate committee passed a bill that would tax commercial solar companies when they sell energy to utilities in other states.
That money would then be divided among residents.
The levy would not apply to people with panels on their rooftops.
Republican Senator Sonny Borrelli helped draft the bill.
"If you're going to come to Arizona and exploit the land and take advantage of our sun, and the citizens don't benefit from that at all, that's not fair," Borrelli said.
Stan Barnes with the Interwest Energy Alliance told lawmakers those solar farm companies do benefit Arizona, as they provide local jobs.
The bill now goes to the full Senate.
