SB1009 - 472R - House Bill Summary

House of Representatives

SB 1009

income tax credit; disabled veterans

Sponsor: Senator Waring

DP	Committee on Ways and Means
DP	Committee on Appropriations(P)
X	Caucus and COW
	As Engrossed and As Passed the House

SB 1009 provides a new refundable individual income tax credit for disabled veterans.

History

The Governor established the Arizona Veterans Task Force in 2005 to better address issues that pertain to Arizona veterans. The Task Force discussed a proposal with the intent to appropriate $6.6 million to provide an income tax credit for Arizona disabled veterans in an amount of $500, prorated by the percentage of the veteran’s disability. This proposal was not approved and did not make the Task Force’s final recommendations.

According to the Arizona Department of Veterans’ Services (ADVS), there are 57,893 disabled veterans in Arizona. Veterans are rated at increments of 10 percent reflecting the degree of disability as determined by the United States Department of Veterans Affairs. Of the 57, 893 disabled veterans in Arizona, 17,481 are in the 10 percent disabled category and 5,442 are in the 100 percent category.

According to ADVS, SB 1009 has an annual estimated cost to the state General Fund of $11 million. According to the Department of Revenue, SB 1009 has an annual estimated cost to the state General Fund of $16.5 million.

Provisions

· Beginning in 2007, creates a new refundable individual income tax credit for disabled veterans. The amount of the credit is $500 multiplied by the veteran’s percentage of disability.

· Prescribes that any amount claimed under the individual income tax credit in excess of the individual’s tax liability shall be treated as a refund.

· Adds the credit to the income tax credit review schedule in 2011.

---------- DOCUMENT FOOTER ---------

Forty-seventh Legislature