ARIZONA HOUSE OF REPRESENTATIVES
First Regular Session
HB2429: tax corrections act of 2021
Sponsor: Representative Bolick, LD 20
Committee on Ways & Means
Corrects errors and obsolete language, addresses blending problems and provides clarifying changes to the tax statutes.
The Department of Revenue (DOR) annually reviews the statutes related to taxation and makes recommendations to correct errors, remove obsolete language and address clarity. These recommendations are then compiled into an annual tax corrections bill.
1. Excludes the shipment of tobacco products to a university that uses the product to conduct basic and applied research, if the product is exempt from federal excise tax, as a prohibited delivery. (Sec. 1)
2. Requires an owner or operator of an international operations center to include a total investment estimate in renewable energy facilities in AZ for a three year period beginning on the date of application, the expected location of the facilities and a statement that a portion of the power will be self-consumed and used by the international operations center. (Sec. 2)
3. Requires the owner or operator of an international operations center to invest at least $1 Million in a renewable energy facility in AZ within a specific three-year period and that construction start within six months after receipt of the application. (Sec. 2)
4. Requires that by the fifth year that the renewable energy facility is operational that at least fifty-one percent of the energy produced be used for self-consumption in an international operations center in AZ. (Sec. 2)
5. Requires the owner or operator of an international operations center to submit documentation annually regarding the progress toward the investment requirement and that the power generated is meeting the requirement for self-consumption. (Sec. 2)
6. Defines "Biomass", "International Operations Center", "Renewable Energy Facility" and Renewable Energy Resource."
7. Permits the director of DOR to obtain a state and federal criminal records check for an applicant, employee or contractor if they receive or access federal tax information in the course of their employment at DOR. (Sec. 3)
8. Defines "Federal Tax Information." (Sec. 3)
9. Clarifies, for tobacco distributor licenses, that in cases of liquidation , insolvency, bankruptcy or court order DOR will not consider a business remaining in operation if the business winds up within sixty days after the order is issued. (Sec. 5)
10. Clarifies that property, buildings and fixtures leased to a nonprofit church, religious assembly or religious institution that are primarily used or held for religious worship are Class 9 property. (Sec. 7)
11. Removes the credit for employment of temporary assistance for needy families recipients from the income tax credit review schedule. (Sec. 9)
12. Clarifies fiduciary return language regarding taxpayers that are required to file an individual income tax return. (Sec. 10)
13. Clarifies the return due date for a partnership or S corporation. (Sec. 11)
14. Removes a subtraction from AZ gross income for amounts authorized by statute relating to holocaust survivors. (Sec. 13)
15. Repeals the subtraction from AZ gross income for World War II victims. (Sec. 15)
16. Clarifies that a taxpayer may not claim both the credit for increased transaction privilege or excise tax paid for education and the credit for increased excise taxes paid for the same taxable year. (Sec. 16)
17. Corrects the end date for the credit for increased research activities to December 31, 2030. (Sec. 17)
18. Clarifies the credit for increased research activities carry-forward treatment for taxable years beginning January 1, 2022. (Sec. 17)
19. Repeals the credit for employment of temporary assistance for needy families recipients. (Sec. 18)
20. Clarifies that amounts paid by an individual to receive a meal or a meal card do not qualify as a fee or donation for community school meal programs. (Sec. 19)
21. Clarifies the minimum investment requirement, for the credit for renewable energy investment and production for self-consumption by international operations centers, must be completed within a three-year period beginning on the receipt date of the initial application or by December 31, 2018, whichever is earlier. (Sec. 20)
22. Removes obsolete carry-forward language regarding the credit for increased research activity. (Sec. 21)
23. Clarifies that only co-owners that are corporations may claim a share of the credit for employment of temporary assistance for needy families recipients. (Sec. 22)
24. Contains a retroactivity clause for Sec. 20 to August 25, 2020.
25. Contains technical and conforming changes.
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29. HB 2429
30. Initials VP Page 0 Ways & Means
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