ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

HB 2688: internal revenue code; conformity.

Sponsor: Representative Olson, LD 10

Committee on Ways & Means

Overview

Conforms the Arizona tax statutes to the U.S. Internal Revenue Code (IRC) of 1986, as amended, and in effect as of January 1, 2025, including those provisions that became effective during 2024 with the specific adoption of all the retroactive dates, but excluding any changes to the IRC enacted after January 1, 2025.

History

Current law conforms Arizona's income tax calculation to the IRC of 1986, as amended, in effect on January 1, 2024, including those provisions that became effective during 2023 with the specific adoption of all retroactive effective dates, but excluding any changes to the code enacted after January 1, 2024. (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. Updates the definition of Internal Revenue Code. (Sec. 1)

2. Conforms the Arizona tax statutes to the U.S. Internal Revenue Code (IRC) of 1986, as amended, and in effect as of January 1, 2025, including those provisions that became effective during 2024 with the specific adoption of all the retroactive dates, but excluding any changes to the IRC enacted after January, 2025. (Sec. 2)

3. Makes conforming changes. (Sec. 2)

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7. HB 2688

8. Initials VP Page 0 Ways & Means

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