ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

 

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2288: income tax; subtraction; foreign dividends

Sponsor: Representative Olson, LD 10

Committee on Ways & Means

Overview

Considers net controlled foreign corporation tested income as foreign dividends for the purposes of subtractions from a corporation's Arizona gross income.

History

In the Internal Revenue Code, net controlled foreign corporation tested income is the net amount of relevant profit a U.S. shareholder must include as income from any controlled foreign corporations (CFCs). It is calculated as the positive excess (if any) of the aggregate of the shareholder's pro rata share of the tested income of each CFC held, subtracted from the shareholder's tested losses from the same. Tested income is a CFC's subset of gross income, after various subtractions and exclusions are calculated (26 U.S. Code § 951A).

Provisions

1.   Adds net controlled foreign corporation tested income, as defined in IRC § 951A, to the definition of dividend income from foreign corporations, that it may be subtracted from Arizona gross income. (Sec. 1)

 

 

 

 

 

 

 

 

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Initials NM                HB 2288

1/16/2026        Page 0 Ways & Means

 

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