ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: WM DP 7-0-0-3


HB2494: internal revenue code; conformity

Sponsor:  Representative Toma, LD 22

House Engrossed

Overview

Conforms Arizona's income tax calculation to the changes made to the Internal Revenue Code (IRC) in effect on January 1, 2020.

History

Current law conforms Arizona's income tax calculation to the IRC of 1986, as amended, in effect on January 1, 2019, including those provisions that became effective during 2018 with the specific adoption of all retroactive effective dates. (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. Additionally, federal adjusted gross income is the starting point for individual income tax.

Provisions

1.    ☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteConforms Arizona's income tax calculation for taxable years beginning January 1, 2020 to the IRC of 1986, as amended, in effect on January 1, 2020, including those provisions that became effective during 2019 with the specific adoption of all retroactive effective dates. (Sec. 2)

2.    Conforms Arizona's income tax calculation for taxable year 2019 to the IRC of 1986, as amended, in effect on January 1, 2018 including those provisions of the Taxpayer First Act and the Further Consolidated Appropriations Act, 2020 that are retroactively effective for taxable year 2019. (Sec. 2)

3.    Conforms Arizona's income tax calculation for taxable years 2016 through 2018 to include the Further Consolidated Appropriations Act, 2020. (Sec. 2)

4.    Removes the conformity language for taxable year 2009. (Sec. 2)

5.    Makes technical and conforming changes. (Sec. 1 and 2)

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