income tax credit; work opportunities.

HB 2805 creates an Arizona work opportunity tax credit for businesses hiring individuals certified as members of "targeted groups" under federal law (like veterans or long-term unemployed). It allows businesses to claim a credit equal to the federal work opportunity tax credit, up to $1,000 per employee, but capped at Arizona tax liability. The credit requires certification from Arizona's Department of Economic Security, with a $10 million annual limit on total credits and a maximum of 10,000 certifications per year. This directly affects Arizona businesses that hire from federally defined targeted groups, linking state tax benefits to federal hiring incentives.