ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

House| WM DP 10-0-0-0

HB2427: unused tax credit; termination; time.

Sponsor:  Representative Bolick, LD 20

Caucus & COW

Overview

Requires tax correction legislation to include a savings clause that includes the repeal of unused credits to allow for any unused credits to be carried forward for the remainder of their carryforward period.

Reduces the termination period for unused credits from  4 years to 3.

History

Currently, A.R.S. § 42-224 provides that credits that are unused in four consecutive years be included in the Department of Revenue's (DOR) tax correction legislation to repeal all statutes related to the credit being terminated.

Provisions

1.   ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteDecreases the period of which an individual or corporate income tax credit was not claimed from four consecutive years to three for DOR to terminate the recognition and servicing of a credit. (Sec. 1)

2.   Requires the DOR tax correction legislation to include a savings clause to allow for unused credit carry forward used in prior years to continue to be used for the remainder of the carryforward period. (Sec. 1)

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

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7.                     HB 2427

8.   Initials VP  Page 0 Caucus & COW

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