ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

HB 2383: conformity; internal revenue code.

Sponsor: Representative Carter, LD 15

Committee on Ways & Means

Overview

Conforms Arizona tax statutes to the Internal Revenue Code (IRC) as amended and in effect as

of January 1, 2023, to reflect changes adopted by the U.S. Congress, including those provisions

that became effective during 2022 with the specific adoption of all retroactive dates.

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. Amends the definition of Internal Revenue Code. (Sec. 1)

2. Conforms Arizona's income tax calculation for taxable years beginning January 1, 2023 to the IRC of 1986, as amended, in effect on January 1, 2023, including those provisions that became effective during 2022 with the specific adoption of all retroactive effective dates including the provisions of the CHIPS and Science Act of 2022 (P.L. 117-167), the Inflation Reduction Act of 2022 (P.L. 117-169) and the Consolidated Appropriations Act, 2023 (P.L. 117-328) that are retroactively effective during Tax Year 2022. (Sec. 2)

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

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7. HB 2383

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