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ARIZONA STATE SENATE
Fifty-Fifth 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 tax credit and establishing a standard for evaluating
and measuring the success or failure of a tax credit. The standard for
evaluating tax credits may include the: 1) history, rationale and estimated
revenue impact; 2) benefit to the state, for a corporate tax credit, in terms
of measurable economic development, new investments, creation of new jobs or
retention of existing jobs; and
3) 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 (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 a tax credit in future years will not substantially increase beyond available projections.
2. Makes technical changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
January 31, 2022
MG/KJA/slp