REFERENCE TITLE: tax credit; earned income

State of Arizona

House of Representatives

Fifty-sixth Legislature

First Regular Session

2023

HB 2267

Introduced by

Representative Cano

An Act

amending section 43-222, Arizona Revised Statutes; amending title 43, chapter 10, article 5, Arizona Revised Statutes, by adding section 43-1073.02; relating to individual income tax credits.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 43-222, Arizona Revised Statutes, is amended to read:

START_STATUTE43-222. Income tax credit review schedule

The joint legislative income tax credit review committee shall review the following income tax credits:

1. For years ending in 0 and 5, sections 43-1079.01, 43-1088, 43-1089.04, 43-1167.01 and 43-1175.

2. For years ending in 1 and 6, sections 43-1072.02, 43-1074.02, 43-1075, 43-1076.01, 43-1077, 43-1078, 43-1083, 43-1083.02, 43-1162, 43-1164.03 and 43-1183.

3. For years ending in 2 and 7, sections 43-1073, 43-1082, 43-1085, 43-1086, 43-1089, 43-1089.01, 43-1089.02, 43-1089.03, 43-1164, 43-1165,  and 43-1181.

4. For years ending in 3 and 8, sections 43-1073.02, 43-1074.01, 43-1168, 43-1170 and 43-1178.

5. For years ending in 4 and 9, sections 43-1073.01, 43-1081.01, 43-1083.03, 43-1084, 43-1164.04, 43-1164.05 and 43-1184. END_STATUTE

Sec. 2. Title 43, chapter 10, article 5, Arizona Revised Statutes, is amended by adding section 43-1073.02, to read:

START_STATUTE43-1073.02. Earned income tax credit

A. A credit is allowed against the taxes due under this title for a taxable year for an individual who qualifies for an earned income tax credit under section 32 of the internal revenue code. The amount of the credit under this section is five percent of the amount of the federal earned income tax credit allowed to the taxpayer for the taxable year.

B. The department shall make suitable claim forms available with the individual income tax returns. A claim for credit under this section is not allowed unless the claim is actually filed with the claimant's income tax return, except that claimants who certify on the claim form that they have no income tax liability for the taxable year and who do not meet the filing requirements of section 43-301 are not required to file the income tax return.

C. Only one claimant per household per taxable year is entitled to a credit under this section.

D. If the allowable amount under subsection A of this section exceeds the amount of tax due under this title, after applying all other credits to which the claimant may be entitled and after any setoff under section 42-1122, the excess shall be paid in the same manner as a refund under section 42-1118. END_STATUTE

Sec. 3. Purpose

Pursuant to section 43-223, Arizona Revised Statutes, the legislature enacts section 43-1073.02, Arizona Revised Statutes, as added by this act, to provide an economic benefit to low-income persons and families in this state.

Sec. 4. Retroactivity

Section 43-1073.02, Arizona Revised Statutes, as added by this act, applies retroactively to taxable years beginning from and after December 31, 2022.