ARIZONA HOUSE OF REPRESENTATIVES

SB 1465: contributions in aid of construction

S/E: contributions in aid of construction

PRIME SPONSOR: Senator Livingston, LD 22

BILL STATUS: Caucus & COW

                                Ways & Means: DPA/SE 8-1-0-1

Summary of the Strike Everything Amendment to SB 1465

Overview

Allows public service corporations that operate a water or sewage system to subtract from their gross taxable income the amount of monies or property received as a contribution in aid of construction.

History

Prior to the passing of the Tax Cuts and Jobs Act (TCJA) public service corporations were permitted to subtract from their gross taxable income the total amount of contributions in the aid of construction (P.L. 104-118 § 1613). The TCJA removed this rule when it was passed by the U.S. Congress in 2017 (P.L. 115-97 § 13312).

Provisions

1. Allows for a public service corporation to subtract from gross taxable income the amount of the contribution in the aid and advance in aid of construction. (Sec.1)

2. Defines contribution in aid construction and public service corporation. (Sec. 1)

3. Contains a retroactive effective date to taxable years from and after December 31, 2017. (Sec. 2)

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7. Fifty-fourth Legislature                       SB 1465

8. First Regular Session                            Version 2: Caucus & COW

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