|
House Engrossed |
|
State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014
|
|
HOUSE BILL 2219 |
|
|
|
|
AN ACT
Amending section 41‑1507, Arizona Revised Statutes; relating to tax credit refunds.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 41-1507, Arizona Revised Statutes, is amended to read:
41-1507. Tax credit for increased research activity; qualification for refund
A. The authority shall receive applications and evaluate and certify taxpayers who otherwise qualify for income tax credits for increased research activities to further qualify for income tax refunds.
B. An application for a refund of the taxpayer's credit must include:
1. The taxpayer's name, address and taxpayer identification number and a telephone number and e‑mail address of a person responsible for the application.
2. A general description of the taxpayer's business and the research activities conducted by the taxpayer.
3. The number of full-time employees on the taxpayer's payroll on the last day of the taxpayer's taxable year. Only taxpayers employing fewer than one hundred fifty full‑time employees qualify for a refund of the taxpayer's income tax credit.
4. The amount of the taxpayer's income tax credit for the taxable year.
5. Any other information required by the authority.
C. Each application shall include a processing fee equal to one per cent of the taxpayer's tax credit being refunded.
D. The authority shall process and evaluate each application and within thirty days after receiving the application either:
1. Issue to the applicant a certificate of qualification for the refund.
2. Notify the applicant of denial of the application with specific reasons for the denial. A denial of the application does not preclude a subsequent application if the applicant is able to correct any error or deficiency.
E. subject to subsection f of this section, the authority shall not approve refunds exceeding a total of five million dollars in any calendar year.:
1. Ten million dollars in calendar year 2015.
2. Fifteen million dollars in calendar year 2016 and each calendar year after 2016.
F. During the first six months of any calendar year, the authority shall not approve refunds that exceed fifty per cent of the dollar limit prescribed in subsection e of this section. During the second six months of the calendar year, the authority may approve the remaining fifty per cent of the dollar limit plus any unused balance of the limit for the first six months of the calendar year for new applicants. Refunds are allowed on a first come, first served basis, according to the date of application. An approved amount applies against the dollar limit for the calendar year in which the application was submitted. If, at the end of any calendar year, an unused balance occurs under the dollar limit prescribed by this subsection, the balance shall be reallocated for the purposes of this section in the following calendar year.
F. g. The authority, with the cooperation of the department of revenue, shall adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this section.
Sec. 2. Effective date
Section 41‑1507, Arizona Revised Statutes, as amended by this act, is effective from and after December 31, 2014.