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ARIZONA HOUSE OF REPRESENTATIVESFifty-fourth Legislature Second Regular Session |
House: WM DP 7-0-0-3: 3rd Rd 60-0-0-0Senate: FIN DP 9-0-1-0 | 3rd Rd 24-1-5-0 |
HB2494: internal revenue code; conformity
Sponsor: Representative Toma, LD 22
Transmitted
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. Conforms 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)
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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9. Initials VP Transmitted
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