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REFERENCE TITLE: tax credit; gray water systems |
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State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024
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SB 1241 |
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Introduced by Senators Shope: Kerr
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An Act
amending section 43-222, Arizona Revised Statutes; amending title 43, chapter 10, article 5, Arizona Revised Statutes, by adding section 43-1080; amending title 43, chapter 11, article 6, Arizona Revised Statutes, by adding section 43-1169; relating to 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:
43-222. 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 43-1074.01, 43-1168, 43-1170 and 43-1178.
5. For years ending in 4 and 9, sections 43-1073.01, 43-1080, 43-1081.01, 43-1083.03, 43-1084, 43-1164.04, 43-1164.05, 43-1169 and 43-1184.
Sec. 2. Title 43, chapter 10, article 5, Arizona Revised Statutes, is amended by adding section 43-1080, to read:
43-1080. Credit for residential gray water treatment system; definition
A. For taxable years beginning from and after December 31, 2024 through December 31, 2035, a credit is allowed against the taxes imposed by this title for expenses that a taxpayer incurred during the taxable year to purchase and install a residential gray water treatment system for use in this state.
B. The amount of the credit is fifty percent of the cost of the residential gray water treatment system not to exceed $5,000 per system.
C. To be eligible for the credit under this section, the taxpayer must submit a form prescribed by the department for certification of the credit. THe department shall certify credits under this section beginning January 2 through January 31 of the year following the calendar year for which the credit is being requested. The form shall include:
1. The name, address and social security or federal employer identification number of the applicant.
2. the number of residential gray water treatment systems for which the credit is claimed.
3. Documentation that shows the date that each residential gray water treatment system was purchased and installed and that each residential gray water treatment system meets the requirements prescribed in section 49-204, subsection C.
4. The total amount of the credit claimed.
D. The department shall review each form submitted pursuant to subsection c of this section and certify to the taxpayer the amount of the credit that is authorized. The amount of the credit for any calendar year may not exceed $5,000,000 per taxpayer. Credits are allowed under this section and section 43-1169 on a first-come, first-served basis. the department may not authorize tax credits under this section and section 43-1169 that exceed in the aggregate a total of $25,000,000 for any calendar year. After the department authorizes $25,000,000 in credits, the department shall deny any subsequent forms that are received for that calendar year. The department may not authorize any additional credits that exceed the $25,000,000 limit even if the amounts that have been certified to any taxpayer were not claimed or a taxpayer otherwise fails to meet the requirements to claim the credit.
E. If the allowable credit exceeds the taxes otherwise due under this title on the claimant's income or if there are no taxes due under this title, the amount of the claim not used to offset the taxes due under this title may be carried forward for not more than two consecutive taxable years as a credit against subsequent years' income tax liability.
F. Co-owners of a business, including partners in a partnership and shareholders of an S corporation, as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest or financial investment in the system. The total amount of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.
G. For the purposes of this section, "residential gray water treatment system" means a residential gray water treatment system that is certified to meet standard 350 for residential gray water recycling that is issued by a national sanitary foundation and an American national standards institute and that complies with the requirements in section 49-204, subsection C.
Sec. 3. Title 43, chapter 11, article 6, Arizona Revised Statutes, is amended by adding section 43-1169, to read:
43-1169. Credit for residential gray water treatment system; definition
A. For taxable years beginning from and after December 31, 2024 through December 31, 2035, a credit is allowed against the taxes imposed by this title for expenses that a taxpayer incurred during the taxable year to purchase and install a residential gray water treatment system for use in this state.
B. The amount of the credit is fifty percent of the cost of the residential gray water treatment system not to exceed $5,000 per system.
C. To be eligible for the credit under this section, the taxpayer must submit a form prescribed by the department for certification of the credit. THe department shall certify credits under this section beginning January 2 through January 31 of the year following the calendar year for which the credit is being requested. The form shall include:
1. The name, address and social security or federal employer identification number of the applicant.
2. the number of residential gray water treatment systems for which the credit is claimed.
3. Documentation that shows the date that each residential gray water treatment system was purchased and installed and that each residential gray water treatment system meets the requirements in section 49-204, subsection C.
4. The total amount of the credit claimed.
D. The department shall review each form submitted pursuant to subsection c of this section and certify to the taxpayer the amount of the credit that is authorized. The amount of the credit for any calendar year may not exceed $5,000,000 per taxpayer. Credits are allowed under this section and section 43-1080 on a first-come, first-served basis. the department may not authorize tax credits under this section and section 43-1080 that exceed in the aggregate a total of $25,000,000 for any calendar year. After the department authorizes $25,000,000 in credits, the department shall deny any subsequent forms that are received for that calendar year. The department may not authorize any additional credits that exceed the $25,000,000 limit even if the amounts that have been certified to any taxpayer were not claimed or a taxpayer otherwise fails to meet the requirements to claim the credit.
E. If the allowable credit exceeds the taxes otherwise due under this title on the claimant's income or if there are no taxes due under this title, the amount of the claim not used to offset the taxes due under this title may be carried forward for not more than two consecutive taxable years as a credit against subsequent years' income tax liability.
F. Co-owners of a business, including corporate partners in a partnership may each claim only the pro rata share of the credit allowed under this section based on the ownership interest or financial investment in the system. The total amount of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.
G. For the purposes of this section, "residential gray water treatment system" means a residential gray water treatment system that is certified to meet standard 350 for residential gray water recycling that is issued by a national sanitary foundation and an American national standards institute and that complies with the requirements in section 49-204, subsection C.
Sec. 4. Purpose
Pursuant to section 43-223, Arizona Revised Statutes, the income tax credits enacted in sections 43-1080 and 43-1169, Arizona Revised Statutes, as added by this act, are intended to promote the use of residential gray water treatment systems in this state.