Assigned to FIN &                                                                                                                     FOR COMMITTEE

 

 

 

 

ARIZONA STATE SENATE

Fifty-Third Legislature, Second Regular Session

 

FACT SHEET FOR H.B. 2090

 

tax credit review; evaluation standard

 

Purpose

 

Expands the Joint Legislative Income Tax Credit Review Committee (Committee) standard for evaluating tax credits to include consideration of future fiscal impact.

 

Background

 

The Committee was established by Laws 2002, Chapter 238 and is statutorily charged with determining the original purpose of each of the existing income tax credits and establishing a standard for evaluating the success or failure of each tax credit. The standard for evaluating tax credits may include: 1) the history, rationale and estimated revenue impact of a tax credit; 2) whether the tax credit has provided a benefit to Arizona including, for corporate income tax credits, measurable economic development, new investments, creation of new jobs or retention of existing jobs in Arizona; and 3) whether the tax credit is unnecessarily complex in its application, administration and approval process.

 

The Committee is required to use Joint Legislative Budget Committee staff in accomplishing its responsibilities and is permitted to use both Legislative Council and Arizona Department of Revenue staff for assistance. The Committee reviews tax credits pursuant to a schedule outlined in statute (A.R.S. §§ 43-221 and 43-222).

 

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

 

Provisions

 

1.      Expands the Committee standard for evaluating tax credits to include consideration of whether adequate protections are in place to ensure that the fiscal impact of a tax credit in future years does not increase substantially beyond current projections.

 

2.      Modifies Committee reporting requirements by replacing a reference to the Arizona State Library, Archives and Public Records with a reference to the Secretary of State.

 

3.      Becomes effective on the general effective date.

 

House Action

 

WM                 2/07/18     DP     9-0-0-0

3rd Read          2/15/18               57-0-3

 

Prepared by Senate Research

February 26, 2018

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