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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
tax credit review committee; meetings
Purpose
Requires the Joint Legislative Income Tax Credit Review Committee (JLITCRC) to meet annually.
Background
The JLITCRC is responsible for determining the original purpose of existing tax credits and establishing a standard for evaluating and measuring the success or failure of a credit. The standard for evaluating credits may include: 1) the history, rationale and estimated revenue impact of the credit; 2) whether the credit has provided a benefit to Arizona; and 3) whether the credit is unnecessarily complex in the application, administration and approval process.
Any new individual or corporate income tax credit must include a specific review year and must also include a purpose clause that explains the rationale and objective of the credit. The JLITCRC must review credits according to the tax credit review schedule and after completing the review process must determine whether the credit should be amended, repealed or retained. 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 and 43-223).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the JLITCRC to meet at least annually on the call of the Chairperson.
2. Makes technical and conforming changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
February 18, 2022
MG/slp