HB 2288 adds a new tax deduction for Arizona corporations receiving dividends from foreign companies. Specifically, it allows corporations to subtract foreign dividend income from their Arizona taxable income, including certain types of foreign earnings like global intangible low-taxed income and "subpart F" income under federal tax rules. This change directly affects Arizona-based corporations that earn income from foreign subsidiaries or investments. The deduction lowers their state taxable income, potentially reducing their Arizona tax liability, but applies only to corporations (not individuals).
SB 1633 amends Arizona's tax code to update the deduction for adoption-related expenses under Section 43-1022. It sets new annual limits: $3,000 for single filers or married couples filing separately before 2026, increasing to $5,000 for single filers/head of household and $10,000 for married couples filing jointly starting in 2026. This deduction directly affects Arizona taxpayers who incurred adoption costs (including medical, legal, and agency fees) in prior years, allowing them to subtract these expenses when filing taxes. The bill does not address primary residence deductions, as the title suggests; instead, it modifies existing adoption expense rules with updated dollar limits. The bill is currently in early legislative stages (Senate First and Second Readings in 2026).
HB 2644 creates a new tax credit for Arizona taxpayers investing in affordable housing projects that qualify for federal low-income housing tax credits. It allows investors to claim credits against their insurance premium tax liability (not income tax), with a $10 million annual cap for projects meeting federal standards, administered by the Arizona Department of Housing. The credit is allocated based on project eligibility statements, can be shared among investors regardless of ownership stake, and expires after 2031. Taxpayers must submit documentation with their tax returns, and unused credits may be carried forward for up to five years. The bill requires annual reporting on housing impacts but does not change income tax rates or directly affect renters.
SB 1371 creates a new income tax credit program in Arizona for businesses expanding or locating "qualified facilities" (like manufacturing plants) within the state. To qualify, businesses must make new capital investments, create jobs paying at least 125% of the median wage (100% in rural areas), and provide health insurance covering 65% of premiums. The credit equals 10% of qualifying investments, paid as $200,000-$300,000 per new job over five years, with annual limits of $125 million total and $30 million per business. This directly affects qualifying businesses seeking tax incentives for facility investments and job creation in Arizona.
HB 2487 requires publicly traded corporations doing business in Arizona - including those traded on foreign exchanges or owned by publicly traded entities - to file annual disclosure statements with the Arizona Commission. These statements must include specific financial data like Arizona gross income, apportionment factors, tax liabilities, and details on affiliated payments, with filings due within 30 days of Arizona tax return deadlines. Corporations not required to file Arizona tax returns may use an alternative simplified statement reporting gross receipts ranges and reasons for non-filing. The bill establishes a unique corporate identifier to track data consistently year-to-year and mandates revised filings for amended returns or audit adjustments. This applies directly to corporations meeting the ownership or trading criteria operating within Arizona.
SB 1578 sets new standard deduction amounts for Arizona income tax filers for the 2025 tax year. It allows taxpayers to choose this standard deduction instead of itemizing deductions, with specific amounts based on filing status: $15,750 for single filers or married filing separately, $23,625 for heads of household, and $31,500 for married couples filing jointly. The bill directly affects Arizona residents who file individual income tax returns for 2025. These deduction levels apply only to the 2025 tax year, beginning after December 31, 2024. The change simplifies tax filing for eligible individuals by establishing fixed deduction amounts.
HB 2011 adds a tax subtraction for qualified adoption expenses in Arizona's individual income tax code. It allows taxpayers to reduce their taxable income by up to $3,000 (before 2026) or $5,000/$10,000 (after 2025, depending on filing status) for costs like legal fees, agency fees, counseling, and embryo adoption. The subtraction applies only in the year the adoption is finalized (or the legal transfer occurs for embryo adoption) and cannot exceed the specified annual limits. This directly affects Arizona residents who pay adoption costs and file state taxes. The bill amends Arizona Revised Statutes § 43-1022, specifically adding Section 12 for adoption-related expenses.
HB 2019 creates a new tax exemption for married individuals under age 25, regardless of income source. It directly affects married couples where both spouses are under 25 years old, exempting them from Arizona's individual income tax for tax years beginning after December 31, 2026. The bill adds Section 43-1043 to the tax code, requiring the state tax department to establish a verification process for eligibility. This is a concrete policy change that eliminates income tax liability for this specific group starting in 2027.
Arizona's HB 2004 creates a new "Family Support Tax Credit" for eligible residents with children. It provides up to $4,000 per qualifying child for married couples filing jointly (or $2,000 for single filers) when claiming the credit, with an additional $4,000 (or $2,000) if the parent completed a parenting course during pregnancy. The credit amount phases out for households earning more than 115% of the federal poverty level, reducing to 50% for incomes between 115%-130% of the poverty level. This credit applies to Arizona tax returns filed by legal residents meeting income thresholds, effective for taxable years beginning after December 31, 2025.
