ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

Senate: FIN DP 9-0-1-0 | 3rd Read: 29-1-0-0

SB 1098: unused tax credit; termination; time

Sponsor: Senator Mesnard, LD 17

Committee on Ways & Means

Overview

Decreases the length of time before the Arizona Department of Revenue (DOR) Director must terminate an unused tax credit and requires a tax corrections bill to include a savings clause for any unused tax credit that have credits that carry forward.

History

The Director may not terminate the recognition and servicing of a tax credit that is subject to pre-approval by the Arizona Commerce Authority (ACA), unless over any period of four consecutive years:

1) DOR has not received a pre-approval notice of any applicant or project for the credit from the ACA; and

2) The credit is not claimed by or allowed to any taxpayer (A.R.S. § 43-224).

Provisions

1. Requires the Director to terminate the recognition and servicing of a tax credit that is unclaimed or not allowed to any taxpayer in three consecutive annual reports, rather than four consecutive annual reports. (Sec. 1)

2. Requires DOR to include a savings clause for unused credits to allow for the continued use of carried forward amounts for the remainder of the carry forward period specified in a repealed credit. (Sec. 1)

3. Prohibits the DOR Director from terminating the recognition and servicing of any income tax credit that is subject to pre-approval by the ACA unless over any period of three consecutive calendar years the credit was not claimed or allowed by any taxpayer or the ADOR has not received and ACA approval notice of any applicant or project for the credit. (Sec. 1)

4. States that unused credits carried forward from prior years are not considered claimed or allowed in the year of the credit carried forward is used. (Sec. 1)

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8. SB 1098

9. Initials VP/BBG Page 0 Ways & Means

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