REFERENCE TITLE: dependent tax credit; additional amount

State of Arizona

House of Representatives

Fifty-sixth Legislature

First Regular Session

2023

HB 2501

Introduced by

Representatives Gress: Carter, Heap, Hendrix, Smith, Wilmeth

An Act

amending section 43-1073.01, Arizona Revised Statutes; relating to the taxation of income.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 43-1073.01, Arizona Revised Statutes, is amended to read:

START_STATUTE43-1073.01. Dependent tax credit

A. A credit is allowed against the taxes imposed by this title for a taxable year for each dependent of a taxpayer as provided by this section.

B. For taxpayers whose federal adjusted gross income is less than $200,000 for a taxpayer who is a single person, a married person filing separately or a head of household or is less than $400,000 for a married couple filing a joint return, the amount of the credit is:

1. $100 for each dependent who is under seventeen years of age at the end of the taxable year. A taxpayer who is or whose spouse is pregnant during the taxable year before the taxable year in which the dependent is born may increase the credit amount allowed under this paragraph for the taxable year in which the dependent is born by the amount allowed under this paragraph prorated based on the number of months the taxpayer or the taxpayer's spouse was pregnant during the taxable year before the taxable year in which the dependent is born.

2. $25 for each dependent who is at least seventeen years of age at the end of the taxable year.

C. For taxpayers whose federal adjusted gross income is $200,000 or more for a taxpayer who is a single person, a married person filing separately or a head of household or is $400,000 or more for a married couple filing a joint return, the amount of the credit is:

1. $100 minus five percent for each $1,000, or fraction thereof, by which the taxpayer's federal adjusted gross income exceeds the applicable threshold provided in this subsection for each dependent who is under seventeen years of age at the end of the taxable year. A taxpayer who is or whose spouse is pregnant during the taxable year before the taxable year in which the dependent is born may increase the credit amount allowed under this paragraph for the taxable year in which the dependent is born by the amount allowed under this paragraph prorated based on the number of months the taxpayer or the taxpayer's spouse was pregnant during the taxable year before the taxable year in which the dependent is born.

2. $25 minus five percent for each $1,000, or fraction thereof, by which the taxpayer's federal adjusted gross income exceeds the applicable threshold provided in this subsection for each dependent who is at least seventeen years of age at the end of the taxable year.

D. In the case of a nonresident or part-year resident taxpayer, the credit allowed under this section is allowed in the percentage that the taxpayer's Arizona gross income is of the federal adjusted gross income.END_STATUTE

Sec. 2. Applicability

This act applies to taxable years beginning from and after December 31, 2022.