ARIZONA
HOUSE OF REPRESENTATIVES
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HB 2528: capital gains; income tax subtraction |
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PRIME SPONSOR: Representative Mesnard, LD 17 BILL STATUS: Caucus & COW |
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Relating to the income tax deduction for
capital gains.
Provisions
1. Increases the tax deduction for any net long-term capital gain included in federal adjusted gross income that is derived from an investment in an asset acquired after December 31, 2017, as follows:
a. From 25% of the capital gain included in federal adjusted gross income to 30% in TY 2018;
b. 35% in TY 2019;
c. 40% in TY 2020;
d. 45% in TY 2021; and
e. 50% in TY 2022. (Sec. 1)
2. Makes conforming changes. (Sec. 1-2)
Current Law
A.R.S. § 43-1001 states that Arizona gross income is equal to the federal adjusted gross income for the taxable year and Arizona adjusted gross income is an individual's Arizona gross income modified by any statutory additions or subtractions. A.R.S § 43-1022 allows a deduction from Arizona gross income for any net long-term capital gain included in federal adjusted gross income, derived from an investment of an asset acquired after December 31, 2011. In TY 2017, a taxpayer may deduct 25% of any net long-term capital gain included in federal adjusted gross income.
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Fifty-third Legislature HB 2528
Second Regular Session Version 2: Caucus & COW
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