ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

Senate: FIN DP 9-0-1-0 | 3rd Read 27-1-2-0

House: WM DP 8-0-0-2 | 3rd Read 58-0-2-0

SB 1264: internal revenue code; conformity

Sponsor: Senator Livingston, LD 22

Transmitted to the Governor

Overview

Conforms Arizona tax statutes to the Internal Revenue Code (IRC) as amended and in effect as of January 1, 2022, to reflect changes adopted by the U.S. Congress, including those provisions of the PPP (Paycheck Protection Program) Extension Act of 2021 (P.L. 117-6) and the Infrastructure Investment and Jobs Act (P.L. 117-58) that became effective during 2021.

History

Current law conforms Arizona's income tax calculation to the IRC of 1986, as amended, in effect on March 11, 2021, along with all federal retroactive dates, but excluding any change to the IRC enacted after March 11, 2021. (A.R.S. § 43-105)

Generally, each year changes are made to the IRC that affect the Arizona income tax calculation. Tax conformity with the IRC is deemed necessary because the calculation of Arizona corporate income tax begins with federal taxable income and the federal adjusted gross income is the starting point for individual income tax.

Provisions

1. Conforms Arizona's income tax calculation for taxable years beginning January 1, 2021 to the IRC of 1986, as amended, in effect on January 1, 2022, including those provisions that became effective during 2021 with the specific adoption of all retroactive effective dates. (Sec. 2)

2. Makes technical and conforming changes. (Sec. 1, 2)

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6. SB 1264

7. Initials VP Page 0 Transmitted

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