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REFERENCE TITLE: income tax; deduction; tuition; loans |
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State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
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HB 2422 |
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Introduced by Representatives Kolodin: Hendrix, Keshel
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AN ACT
amending section 43-1042, Arizona Revised Statutes; relating to individual income tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 43-1042, Arizona Revised Statutes, is amended to read:
43-1042. Itemized deductions
A. Except as provided by subsections B and C of this section, at the election of the taxpayer, and in lieu of the standard deduction allowed by section 43-1041, in computing taxable income the taxpayer may take the amount of itemized deductions allowable for the taxable year pursuant to subtitle A, chapter 1, subchapter B, parts VI and VII, but subject to the limitations prescribed by sections 67, 68 and 274 of the internal revenue code.
B. In lieu of the amount of the federal itemized deduction for expenses paid for medical care allowed under section 213 of the internal revenue code, the taxpayer may deduct the full amount of such expenses.
C. A taxpayer shall not claim both a deduction provided by this section and a credit allowed by this title with respect to the same charitable contributions. This subsection applies to any contribution for which a credit is allowed by this title even if the contribution is treated as a payment of state income tax.
D. The taxpayer may add any interest expense paid by the taxpayer for the taxable year that is equal to the amount of federal credit for interest on certain home mortgages allowed by section 25 of the internal revenue code.
e. For taxable years beginning from and after December 31, 2024, in addition to the other itemized deductions allowed by this section, in computing taxable income a taxpayer may deduct the amount paid by the taxpayer during the taxable year for both of the following:
1. Tuition to a public, nonprofit or private college, university, community college or other postsecondary educational institution.
2. Student loan repayment.