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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
tax credit review; evaluation standard
Purpose
Prescribes an additional standard for the Joint Legislative Income Tax Credit Review Committee (JLITCRC) to evaluate individual and corporate income tax credits.
Background:
The JLITCRC is responsible for determining the original purpose of each existing income tax credit and establishing a standard for evaluating the success or failure of a tax credit. The standard for evaluation of the credits may include: 1) the history, rationale and estimated revenue impact; 2) the benefit to the state in terms of measurable economic development, new investments, creation of new jobs or retention of existing jobs; and 3) the complexity of the application, administration and approval process of the credit. The JLITCRC must annually report its findings and recommendations to the President of the Senate, the Speaker of the House of Representatives and the Governor by December 15. A copy of this report must be provided to the Director of the Arizona State Library, Archives and Public Records (A.R.S. § 43-221).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows the standard for evaluating tax credits to include whether adequate protections are in place to ensure that the fiscal impact of the credit in future years will not substantially increase beyond projections available when the credit is evaluated.
2. Requires a copy of the JLITCRC's report be sent to the Secretary of State, rather than the Director of the Arizona State Library, Archives and Public Records.
3. Makes technical changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
January 27, 2020
MG/AJS/gs