A.R.S. § 43-620 — Arizona Code / Title 43 / Chapter 6 / Article 1 / Section 620
43-620 Contribution to veterans' donations fund
Status: in_force

43-620. Contribution to veterans' donations fund

A. The department shall provide a space on the individual income tax return form in which the taxpayer may designate an amount of the taxpayer's refund as a voluntary contribution to the veterans' donations fund established by section 41-608.

B. After subtracting any setoff for debts pursuant to section 42-1122, the department of revenue shall subtract the designated amount from the refund due the taxpayer and transfer it to the department of veterans' services for deposit in the veterans' donations fund. The department of revenue shall determine the initial administrative cost of this section and report the amount to the department of veterans' services. The department of veterans' services shall transfer that amount to the state general fund.

C. The taxpayer may also donate any amount to the veterans' donations fund, in lieu of or in addition to the designated portion of the tax refund, by an appropriate indication on the return and by including that amount with the return.
A.R.S. § 43-1381 — Arizona Code / Title 43 / Chapter 13 / Article 6 / Section 1381
43-1381 Credit for taxes paid to other state or country
Status: in_force

43-1381. Credit for taxes paid to other state or country

A. If an estate or trust is a resident of this state and also a resident of another state or country, the estate or trust is allowed a credit against the taxes imposed by this title for net income taxes imposed by and paid to the other state or country, subject to the following conditions:

1. The credit is allowed only for the proportion of the taxes paid to the other state or country that the income taxable under this title and also subject to tax in the other state or country bears to the entire income on which the taxes paid to the other state or country are imposed.

2. The credit shall not exceed the proportion of the tax payable under this title that the income subject to tax in the other state or country and also taxable under this title bears to the entire income that is taxable under this title.

3. The credit shall not be allowed for taxes paid to the other state or country on income from sources within this state.

B. If any taxes paid to another state or country for which a taxpayer has been allowed a credit under this section are at any time credited or refunded to the taxpayer, the taxpayer shall immediately report this fact to the department.

C. A tax equal to the credit allowed for the taxes credited or refunded by the other state or country is due and payable from the taxpayer on notice and demand from the department.

D. For the purposes of this section, an estate or trust is considered to be a resident of the state or country that is legally entitled to tax the income of the estate or trust regardless of whether the income is derived from sources in that state or country.

E. For purposes of this section, net income taxes imposed by another country shall include those taxes that qualify for a credit under sections 901 and 903 of the internal revenue code and the regulations thereunder.
A.R.S. § 43-618 — Arizona Code / Title 43 / Chapter 6 / Article 1 / Section 618
43-618 Contribution to domestic violence services fund
Status: in_force

43-618. Contribution to domestic violence services fund

A. The department shall provide a space on the individual income tax return form in which the taxpayer may designate an amount of the taxpayer's refund as a voluntary contribution to the domestic violence services fund established by section 36-3002.

B. After subtracting any setoff for debts pursuant to section 42-1122, the department of revenue shall subtract the designated amount from the refund due the taxpayer and transfer it to the department of economic security for deposit in the fund.

C. The taxpayer may also donate any amount to the fund, in lieu of or in addition to the designated portion of the tax refund, by an appropriate indication on the return and by including that amount with the return.
A.R.S. § 43-1130.01 — Arizona Code / Title 43 / Chapter 11 / Article 3 / Section 1130.01
43-1130.01 Restoration of a substantial amount held under claim of right; computation of tax
Status: in_force

43-1130.01. Restoration of a substantial amount held under claim of right; computation of tax

A. This section applies if:

1. An item of income was included in gross income for a prior taxable year or years because it appeared that the taxpayer had an unrestricted right to the item.

2. A deduction would be allowable under the internal revenue code or this title for the taxable year, without application of section 1341(b)(3) of the internal revenue code or section 43-1121, paragraph 16, because after the close of the prior taxable year or years it was established that the taxpayer did not have an unrestricted right to all or part of the item.

3. The amount of the deduction exceeds $3,000.

B. If all of the conditions in subsection A of this section apply, the tax imposed by this chapter for the taxable year is an amount equal to the tax for the taxable year computed without the deduction, minus the decrease in tax under this chapter for the prior taxable year or years that would result solely from excluding the item or portion of the item from gross income for the prior taxable year or years.

C. If the decrease in tax exceeds the tax imposed by this chapter for the taxable year, computed without the deduction, the excess is considered to be a payment of tax on the last day prescribed by law for the payment of tax for the taxable year and shall be refunded or credited in the same manner as if it were an overpayment for the taxable year.

D. Subsection B of this section does not apply to any deduction that is allowable with respect to an item that was included in gross income by reason of the sale or other disposition of stock in trade of the taxpayer, or other property of a kind that would properly have been included in the inventory of the taxpayer on hand at the close of the prior taxable year, or property that is held by the taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or business.  This subsection does not apply if the deduction arises out of refunds or repayments with respect to rates made by a regulated public utility that is listed in section 7701(a)(33)(A) through (H) of the internal revenue code, if the refunds or repayments are:

1. Required to be made by the government, political subdivision, agency or instrumentality referred to in that section.

2. Required to be made by an order of a court.

3. Made in settlement of litigation or under threat or imminence of litigation.

E. If the exclusion under subsection B of this section results in:

1. A net operating loss for the prior taxable year or years for purposes of computing the decrease in tax for the prior year or years under subsection B of this section:

(a) The loss shall be carried over under this chapter to the same extent and in the same manner as provided under section 43-1123, and under prior law.

(b) A carryover beyond the taxable year may not be taken into account.

2. A capital loss for the prior taxable year or years, for purposes of computing the decrease in tax for the prior taxable year or years under subsection B of this section:

(a) The loss shall be:

(i) Carried over under this chapter to the same extent and in the same manner as was provided under prior law for taxable years beginning on or before December 31, 1987.

(ii) Carried back and carried over to the same extent and in the same manner as provided under section 1212 of the internal revenue code for taxable years beginning from and after December 31, 1987.

(b) A carryover beyond the taxable year may not be taken into account.

F. In computing Arizona taxable income for taxable years subsequent to the current taxable year, the net operating loss or capital loss determined in subsection E of this section shall be taken into account to the same extent and in the same manner as a net operating loss or capital loss sustained for prior taxable years.
A.R.S. § 43-1362 — Arizona Code / Title 43 / Chapter 13 / Article 5 / Section 1362
43-1362 Request for certificate
Status: in_force

43-1362. Request for certificate

Within thirty days after receiving a request for a certificate, the department shall either issue the certificate or notify the person requesting the certificate of the amount of tax that shall be paid or the amount of bond, deposit or other security that shall be furnished as a condition of issuance of the certificate.
A.R.S. § 43-921 — Arizona Code / Title 43 / Chapter 9 / Article 2 / Section 921
43-921 Computation of tax when law changed
Status: in_force

43-921. Computation of tax when law changed

The tax for any period beginning in one calendar year ("first calendar year") and ending in the following calendar year ("second calendar year") where the law applicable to the computation of taxes for taxpayers reporting on a calendar year basis differs for the second calendar year from the law applicable to the first calendar year, shall, except as otherwise provided, be the sum of paragraphs 1 and 2:

1. The same proportion of a tax for the entire period, determined under the law applicable to the first calendar year and at the rates for such year, which the portion of such period falling within the first calendar year is of the entire period.

2. The same proportion of a tax for the entire period, determined under the law applicable to the second calendar year and at the rates for such year, which the portion of such period falling within the second calendar year is of the entire period.
A.R.S. § 43-1127 — Arizona Code / Title 43 / Chapter 11 / Article 3 / Section 1127
43-1127 Deferred exploration expenses
Status: in_force

43-1127. Deferred exploration expenses

The amount of exploration expenses added to Arizona gross income pursuant to section 43-1121, paragraph 10 may be subtracted on a ratable basis as the units of produced ores or minerals discovered or explored by reason of such expenditures are sold. An election made for any taxable year shall be binding for that year.
A.R.S. § 43-1605 — Arizona Code / Title 43 / Chapter 16 / Article 1 / Section 1605
43-1605 Audits and financial reviews
Status: in_force

43-1605. Audits and financial reviews

A. On or before September 30 of each year, each school tuition organization that received one million dollars or more in total donations in the previous fiscal year shall provide for a financial audit of the organization.  The audit must be conducted in accordance with generally accepted auditing standards and must evaluate the organization's compliance with section 43-1603, subsection B, paragraph 1.  The audit must be conducted by an independent certified public accountant who is licensed in this state or who has a limited reciprocity privilege pursuant to section 32-725. The certified public accountant and the firm the certified public accountant is affiliated with shall be independent with respect to the organization, its officers and directors, services performed and all other independent relationships prescribed by generally accepted auditing standards.

B. On or before September 30 of each year, each school tuition organization that received less than one million dollars in total donations in the previous fiscal year shall provide for a financial review of the organization.  The review must be conducted in accordance with standards for accounting and review services and must evaluate the organization's compliance with the fiscal requirements of this article.  The review must be conducted by an independent certified public accountant who is licensed in this state or who has a limited reciprocity privilege pursuant to section 32-725. The certified public accountant and the firm the certified public accountant is affiliated with shall be independent with respect to the organization, its officers and directors, services performed and all other independent relationships prescribed by generally accepted auditing standards.

C. Within five days after receiving the audit or financial review the school tuition organization shall file a signed copy of the audit or financial review with the department.

D. The school tuition organization shall pay the fees and costs of the certified public accountant under this section from the organization's operating monies.  The fees and costs shall be excluded from the calculation of total revenues spent on scholarships and tuition grants.
A.R.S. § 43-1507 — Arizona Code / Title 43 / Chapter 15 / Article 1 / Section 1507
43-1507 Audits and financial reviews
Status: in_force

43-1507. Audits and financial reviews

A. On or before September 30 of each year, each school tuition organization that received one million dollars or more in total donations in the previous fiscal year shall provide for a financial audit of the organization. The audit must be conducted in accordance with generally accepted auditing standards and must evaluate the organization's compliance with section 43-1503, subsection B, paragraph 1.  The audit must be conducted by an independent certified public accountant who is licensed in this state or who has a limited reciprocity privilege pursuant to section 32-725. The certified public accountant and the firm the certified public accountant is affiliated with shall be independent with respect to the organization, its officers and directors, services performed and all other independent relationships prescribed by generally accepted auditing standards.

B. On or before September 30 of each year, each school tuition organization that received less than one million dollars in total donations in the previous fiscal year shall provide for a financial review of the organization.  The review must be conducted in accordance with standards for accounting and review services and must evaluate the organization's compliance with the fiscal requirements of this article.  The review must be conducted by an independent certified public accountant who is licensed in this state or who has a limited reciprocity privilege pursuant to section 32-725. The certified public accountant and the firm the certified public accountant is affiliated with shall be independent with respect to the organization, its officers and directors, services performed and all other independent relationships prescribed by generally accepted auditing standards.

C. Within five days after receiving the audit or financial review, the school tuition organization shall file a signed copy of the audit or financial review with the department.

D. The school tuition organization shall pay the fees and costs of the certified public accountant under this section from the organization's operating monies.  The fees and costs shall be excluded from the calculation of total revenues spent on scholarships and tuition grants.
A.R.S. § 43-435 — Arizona Code / Title 43 / Chapter 4 / Article 3 / Section 435
43-435 Failure to collect and pay over tax; personal liability
Status: in_force

43-435. Failure to collect and pay over tax; personal liability

Any person required to collect, truthfully account for and pay over any tax imposed by this title who fails to do so is, in addition to other penalties provided by law, personally liable for the total amount of the tax not collected or accounted for and paid over.
A.R.S. § 43-1164.05 — Arizona Code / Title 43 / Chapter 11 / Article 6 / Section 1164.05
43-1164.05 Credit for renewable energy investment and production for self-consumption by international operations centers; definitions
Status: reserved

43-1164.05. Credit for renewable energy investment and production for self-consumption by international operations centers; definitions

A. A credit is allowed against the taxes imposed by this title for investment in new renewable energy facilities that produce energy for self-consumption using renewable energy resources if the power will be used primarily for an international operations center.

B. The taxpayer is eligible for the credit if all of the following apply:

1. The taxpayer, or a third-party entity on behalf of or for the direct benefit of the taxpayer, invests at least $100,000,000 in one or more new renewable energy facilities in this state that produce energy for self-consumption using renewable energy resources. The minimum investment must be completed within a three-year period beginning on the date the initial application is received or by December 31, 2018, whichever is earlier.

2. A portion of the energy produced at each renewable energy facility is used for self-consumption in this state. By the fifth year a renewable energy facility is in operation, at least fifty-one percent of the energy produced must be used for self-consumption in this state.  Self-consumption includes the power used by related entities if the related entities are directly or indirectly under the same ownership interests that collectively own more than eighty percent. Power that a renewable energy facility transfers to a utility or power generated by a utility-owned renewable energy facility developed on behalf of or for the direct benefit of the taxpayer qualifies as self-consumption if the utility is the same utility that provides power to the owner's international operations center in this state.

3. The power that is used for self-consumption under paragraph 2 of this subsection is used for an international operations center in this state. A lessor of an international operations center facility that uses power for self-consumption under paragraph 2 of this subsection satisfies the requirements of this paragraph if the lessee is an international operations center and the power is transferred as part of the lease to the lessee.

C. Subject to subsection F of this section, the credit authorized by this section is $5,000,000 per year for five years for each renewable energy facility. The maximum credit allowed per taxpayer per year is $5,000,000. The taxpayer, including all affiliates of the taxpayer, may not cumulate tax credits under this section over different taxable years exceeding, in the aggregate, $25,000,000. The initial credit for each facility is claimed in the year that the facility becomes operational. A credit, other than carryovers allowed under subsection M of this section, may not be claimed for any taxable year beginning after December 31, 2025. An international operations center that is initially certified pursuant to section 41-1520, subsection C after December 31, 2018 may not claim the tax credit authorized by this section.

D. To qualify as a separate renewable energy facility for the purposes of this section, a facility must be located at least one mile from any other renewable energy facility for which the taxpayer is claiming a credit under this section.

E. To be eligible for the credit under this section, the taxpayer must apply to the department for certification of the credit on a form prescribed by the department.  The application shall include:

1. The name, address and social security number or federal employer identification number of the applicant.

2. An estimate of the total investment the taxpayer will make, including investments made by a third-party entity on behalf of or for the direct benefit of the taxpayer, over a three-year period beginning on the date the application is received, in new renewable energy facilities in this state that produce energy for self-consumption using renewable energy resources. For investments made by a third party, a statement from the utility that provides power to the international operations center affirming that the investment in new renewable energy facilities is made on behalf of or for the direct benefit of the taxpayer satisfies the requirement of this paragraph.

3. The expected location of each of the taxpayer's facilities that comprise the total investment in paragraph 2 of this subsection and the earliest date that each facility is expected to be operational.

4. A statement that the portion of the power generated by each facility, as required by subsection B, paragraph 2 of this section, shall be for self-consumption and shall be used for international operations center use.

5. Any additional information that the department requires.

F. The department shall review each application under subsection E of this section and preapprove the taxpayer for a specified amount of credit that is authorized. Credits are allowed under this section on a first-come, first-served basis. The department may not authorize tax credits under this section that exceed in the aggregate a total of $10,000,000 for any calendar year.  The portion of each year's limit that is reserved for each taxpayer must be based on the year that each credit is expected to be claimed using the dates provided in subsection E, paragraph 3 of this section. If the year a facility is completed is different from the estimated completion date provided in subsection E, paragraph 3 of this section, the taxpayer must amend the application with the new dates. If an application is received that, if authorized, would require the department to exceed the $10,000,000 limit, the department shall grant the applicant only the remaining credit amount that would not exceed the $10,000,000 limit. After the department authorizes $10,000,000 in tax credits, the department shall deny any subsequent applications that are received for that calendar year. The department may not authorize any additional tax credits that exceed the $10,000,000 limit even if the amounts that have been certified to any taxpayer are not claimed or a taxpayer otherwise fails to meet the requirements to claim the additional credit.

G. If a taxpayer fails to start construction within six months after submitting the application under subsection E of this section, the preapproval issued under subsection F of this section is void and all monies reserved from the limits specified in subsection F of this section revert back to the limit for the year for which they were reserved.

H. Each year after initial preapproval, on or before the anniversary date of the application specified in subsection E of this section, the taxpayer must submit to the department:

1. Documentation of the taxpayer's progress toward the investment required by subsection B, paragraph 1 of this section. This documentation is not required after the department receives a report stating that the required investment threshold has been reached.

2. Documentation for each facility that demonstrates that the required portion of the power generated by each renewable energy facility is for self-consumption as required by subsection B, paragraph 2 of this section.

3. If applicable, certification from the Arizona commerce authority pursuant to section 41-1520.

I. The taxpayer must submit a request for final certification to the department within thirty days after each of the renewable energy facilities for which an authorization was given under subsection F of this section becomes operational. Within thirty days after receiving a completed request under this subsection, the department shall review the request and either issue a final certification of the credit to the taxpayer or issue a denial of the credit if it is determined that the requirements of this section have not been met.  Every final certification issued under this subsection must include a facility code issued by the department that is unique to each facility.  To show that the facility has been certified, the taxpayer shall include with the tax return the facility code for each facility for which a credit is claimed. If the taxpayer is the owner or operator of an international operations center, the taxpayer must submit the request for final certification for each of the renewable energy facilities for which capital investment will be claimed towards the required investment threshold and must submit additional evidence to the department within sixty days after the end of the fifth year of operation of each facility that the requirements of subsection B, paragraph 2 of this section have been met.

J. If the taxpayer fails to make the required investment in renewable energy facilities within the time period required by subsection B, paragraph 1 of this section or if the certification of an international operations center has been revoked under section 41-1520 due to a failure to make a $1,250,000,000 investment in the center within ten years after certification or if the taxpayer fails to receive final certification of the credit under subsection I of this section, the taxpayer is not eligible and must cease claiming any further credits under this section and shall reimburse the amount of all credits previously received under this section. The reimbursement must be made on the taxpayer's income tax return for the taxable year in which it is first known that the required investment would not be made within the required time or the taxable year in which the certification was revoked.  The department may give special consideration or allow a temporary exemption from reimbursement if there is extraordinary hardship due to factors beyond the taxpayer's control.  If the reimbursement is due to revocation of the certification of an international operations center due to a failure to invest $1,250,000,000 in the center within ten years after certification, the credits shall be reimbursed in inverse proportion to the total capital investment made in the international operations center divided by $1,250,000,000. The department may require reimbursement before the tenth anniversary of certification of an international operations center if the facility has been closed or relocated or the taxpayer has otherwise demonstrated that the $1,250,000,000 investment will not be timely made. For taxpayers using investments made by third-party entities on behalf of or for the direct benefit of the taxpayer, the investment threshold is $1,500,000,000. A third-party entity may not include the owner or operator of the international operations center or, solely for the purposes of this subsection, the owner's or operator's affiliated entities.

K. If a particular facility ceases to meet the requirements of this section or if the facility is sold, the taxpayer may not claim any future credits related to that facility.

L. Co-owners of a business, including corporate partners in a partnership and corporate members of a limited liability company treated as a partnership, may each claim the pro rata share of the credit allowed under this section based on ownership interest.  Only co-owners that are corporations may claim a share of the credit allowed under this section. The total of the credits allowed all the owners of the business may not exceed the amount that would have been allowed for a sole owner of the business.

M. If the allowable tax credit for a taxpayer exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the amount of the claim not used to offset taxes under this title may be carried forward for not more than five consecutive taxable years as a credit against subsequent years' income tax liability.

N. A taxpayer may not claim a credit under this section and section 43-1164.03 regarding the same facilities.

O. The department shall adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this section.

P. For the purposes of this section:

1. "Biomass" means organic material that is available on a renewable or recurring basis, including:

(a) Forest-related materials, including mill residues, logging residues, forest thinnings, slash, brush, low-commercial value materials or undesirable species, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds and woody material harvested for the purpose of forest fire fuel reduction or forest health and watershed improvement.

(b) Agricultural-related materials, including orchard trees, vineyard, grain or crop residues, including straws and stover, aquatic plants and agricultural processed coproducts and waste products, including fats, oils, greases, whey and lactose.

(c) Animal waste, including manure and slaughterhouse and other processing waste.

(d) Solid woody waste materials, including landscape or right-of-way tree trimmings, rangeland maintenance residues, waste pallets, crates and manufacturing, construction and demolition wood wastes but excluding pressure-treated, chemically treated or painted wood wastes and wood contaminated with plastic.

(e) Crops and trees planted for the purpose of being used to produce energy.

(f) Landfill gas, wastewater treatment gas and biosolids, including organic waste by-products generated during the wastewater treatment process.

2. "International operations center" means a facility that is certified by the Arizona commerce authority pursuant to section 41-1520.

3. "Renewable energy facility" means a facility in which the taxpayer, or a third-party entity on behalf of and for the benefit of the taxpayer, invested at least $30,000,000, that has at least twenty megawatts generating capacity or a minimum typical annual generation of forty thousand megawatt hours, that is located on land in this state owned or leased by the taxpayer or a third-party entity on behalf of and for the benefit of the taxpayer and that produces electricity using a renewable energy resource.

4. "Renewable energy resource" means a resource that generates electricity through the use of only the following energy sources:

(a) Solar light.

(b) Solar heat.

(c) Wind.

(d) Biomass, including fuel cells supplied directly or indirectly with biomass generated fuels.

(e) Battery storage that is independent from or coupled with other sources.
A.R.S. § 43-1365 — Arizona Code / Title 43 / Chapter 13 / Article 5 / Section 1365
43-1365 Request for prompt assessment
Status: in_force

43-1365. Request for prompt assessment

In the case of income received or accrued during the lifetime of a decedent, or by the decedent's estate during the period of administration, the department shall send by physical mail or e-mail notices proposing to assess the tax and shall commence any proceeding in court without assessment for the collection of the tax within eighteen months after the fiduciary of the estate or any other person who is liable for the tax or any portion of the tax files a written request after the return is filed. After filing the request, a fiduciary may consent in writing to waive the limitation under this section.
A.R.S. § 43-1096 — Arizona Code / Title 43 / Chapter 10 / Article 6 / Section 1096
43-1096 Credit for income taxes paid by nonresident; definitions
Status: in_force

43-1096. Credit for income taxes paid by nonresident; definitions

A. Subject to the following conditions, nonresidents shall be allowed a credit against taxes imposed by this title for net income taxes imposed by and paid to the state or country of residence on income taxable under this title:

1. The credit shall be allowed only if the state or country of residence either does not tax income of residents of this state derived from sources within that state or country or allows residents of this state a credit against taxes imposed by that state or country on the income for taxes paid or payable under this title.

2. The credit shall not be allowed for taxes paid to a state or country that allows its residents a credit against the taxes imposed by that state or country for income taxes paid or payable under this title irrespective of whether its residents are allowed a credit against the taxes imposed by this title for income taxes paid to that state or country.

3. The credit shall be allowed only for the proportion of the taxes paid to the state or country of residence as the income taxable under this title and also subject to tax in the state or country of residence bears to the entire income on which the taxes paid to the state or country of residence are imposed.

4. The credit shall not exceed the proportion of the tax payable under this title as the income taxable under this title and also subject to tax in the state or country of residence bears to the entire income taxable under this title.

B. The taxpayer may apply the allowable credit only against Arizona income tax for the same taxable year in which the income is subject to tax in the other state.

C. If the taxpayer claims the credit for taxes paid to a foreign country, the taxpayer shall use the conversion rate in effect on the date the taxpayer paid the taxes to the foreign country.

D. For the purposes of this section:

1. "Entire income on which the taxes paid to the state or country of residence are imposed" means the other state's or country's adjusted gross income computed under the equivalent of section 43-1001, but does not include any exemption allowable under the equivalent of section 43-1023.

2. "Entire income taxable under this title" means Arizona adjusted gross income computed under section 43-1094 but does not include any exemption allowed under section 43-1023.

3. "Income taxable under this title and also subject to tax in the state or country of residence" means the portion of income that is included in entire income taxable under this title that is also included in the entire income on which the taxes paid to the state or country of residence are imposed.  The taxpayer shall increase or reduce the portion of income that is included in the entire income taxable under this title by any related additions under section 43-1021 and by any related subtractions under section 43-1022. The taxpayer shall increase or reduce the portion of income that is included in the entire income on which taxes paid to the state or country of residence are imposed by any related additions and subtractions under the other state's equivalent of sections 43-1021 and 43-1022, as applicable.

4. "Net income tax":

(a) Means:

(i) A tax that grants deductions or exemptions from gross income.

(ii) Any tax imposed by another country that qualifies for a credit under sections 901 and 903 of the internal revenue code and the regulations under those sections, even if withheld from income.

(b) Except as specifically included in subdivision (a) of this paragraph, does not include:

(i) A system of taxation that assesses taxes on gross income, gross receipts or gross dividends.

(ii) Taxes withheld from income.

5. "Tax payable under this title" means the income tax imposed by this state on the taxpayer's taxable income computed under section 43-1095 minus any tax credit amount claimed for the taxable year under article 5 of this chapter but not including the credit amount allowed under this section.
A.R.S. § 43-942 — Arizona Code / Title 43 / Chapter 9 / Article 4 / Section 942
43-942 Allocation in the case of controlled corporations
Status: in_force

43-942. Allocation in the case of controlled corporations

A. In any case of two or more corporations owned or controlled directly or indirectly by the same interests, the department may distribute, apportion or allocate gross income, deductions, credits or allowances between or among such taxpayers, if it determines that such distributions, apportionment or allocation is necessary in order to prevent evasion of taxes or clearly to reflect the income of any such taxpayer.

B. For the purpose of enforcing this section, the department may require the filing of a combined report and such other information as it deems necessary unless the taxpayer has elected or is required to file a consolidated return pursuant to section 43-947.
A.R.S. § 43-1314 — Arizona Code / Title 43 / Chapter 13 / Article 2 / Section 1314
43-1314 Charge for estate or trust taxes upon estate or trust
Status: in_force

43-1314. Charge for estate or trust taxes upon estate or trust

Taxes on income of an estate or trust which is taxable to the estate or trust are a charge upon the estate or trust and shall be paid by the fiduciary.
A.R.S. § 43-1086 — Arizona Code / Title 43 / Chapter 10 / Article 5 / Section 1086
43-1086 Credit for donation to the military family relief fund subaccounts
Status: in_force

43-1086. Credit for donation to the military family relief fund subaccounts

(Rpld. 1/1/27)

A. For taxable years beginning from and after December 31, 2007 through December 31, 2026, a credit is allowed against the taxes imposed by this title for cash contributions made by a taxpayer during the taxable year to the pre-9/11 veterans subaccount or post-9/11 veterans subaccount of the military family relief fund established by section 41-608.04. The amount of the credit is the lowest of the following amounts, as applicable:

1. The total amount of contributions to the pre-9/11 veterans subaccount or post-9/11 veterans subaccount, or both subaccounts, by the taxpayer during the taxable year.

2. Two hundred dollars of contributions during the taxable year by a taxpayer filing as a single individual or a head of household.

3. Four hundred dollars of contributions during the taxable year by a married couple filing a joint return.

4. The taxpayer's tax liability for the taxable year.

B. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed on a joint return.
A.R.S. § 43-1071 — Arizona Code / Title 43 / Chapter 10 / Article 5 / Section 1071
43-1071 Credit for income taxes paid to other states; definitions
Status: in_force

43-1071. Credit for income taxes paid to other states; definitions

A. Subject to the following conditions, residents are allowed a credit against the taxes imposed by this chapter for net income taxes imposed by and paid to another state or country on income taxable under this chapter:

1. The credit is allowed only for taxes paid to the other state or country on income that is derived from sources within that state or country and that is taxable under its laws irrespective of the residence or domicile of the recipient.

2. The credit is not allowed if the other state or country allows residents of this state a credit against the taxes imposed by that state or country for taxes paid or payable under this chapter.

3. The credit shall not exceed the proportion of the tax payable under this chapter as the income subject to tax in the other state or country and also taxable under this title bears to the taxpayer's entire income on which the tax is imposed by this chapter.

B. If any taxes paid to another state or country for which a taxpayer has been allowed a credit under this section are at any time credited or refunded to the taxpayer:

1. The taxpayer shall immediately report that fact to the department.

2. A tax equal to the credit allowed for the taxes credited or refunded by the other state or country is due and payable from the taxpayer on notice and demand from the department.

3. Interest shall be added to and collected as a part of the tax at the rate determined pursuant to section 42-1123 from the date the credit was allowed under this chapter to the date of the notice and demand.

4. If the tax and interest are not paid within ten days after the date of notice and demand, there shall be collected as a part of the tax interest on the unpaid amount of tax and interest at the rate of twelve percent a year from the date of the notice and demand until the amount is paid.

C. The credit against the taxes imposed by this chapter for net income taxes paid to another state or country is not allowed to any taxpayer or any class of taxpayers if the allowances of the credit will result in any invalid or illegal discrimination against another taxpayer or another class of taxpayers.

D. For taxable years beginning on or after January 1, 2002 and subject to the following conditions, a resident of this state, who is also considered to be a resident of another state under the laws of the other state, is allowed a credit against the taxes imposed by this title for net income taxes imposed by and paid to that state on income taxable under this title as follows:

1. The credit is allowed only if the other state taxes the income to the resident of this state and does not allow the taxpayer a credit against taxes imposed by that state on that income for taxes paid or payable on that income under this title.

2. The credit is allowed only for the proportion of the taxes paid to the other state as the income taxable under this title and also subject to tax in the other state bears to the entire income on which the taxes paid to the other state are imposed.

3. The credit may not exceed the proportion of the tax payable under this title as the income taxable under this title and also subject to tax in the other state bears to the entire income taxable under this title.

4. For the purpose of the credit allowed under this subsection, "income taxable under this title and also subject to tax in the other state" means income that would be sourced to the other state if the other state were imposing its income tax on the taxpayer as if the taxpayer was a nonresident of that other state.

E. The taxpayer may apply the allowable credit only against Arizona income tax for the same taxable year in which the income is subject to tax in the other state.

F. An individual who participates in a composite income tax return in another state may claim a credit for taxes paid to the other state if the taxpayer meets all of the requirements of this section and the taxes paid to the other state are imposed on and paid directly by the individual taxpayer and not the entity.  For the purposes of this subsection, taxes are considered to be imposed on and paid directly by the individual under one or more of the following circumstances:

1. The individual makes direct payment to the other state.

2. The individual makes direct payment to the entity filing the composite income tax return.

3. The entity charges the individual's loan account for the amount of the tax.

4. The entity reduces the individual's capital account.

G. For taxable years beginning from and after December 31, 2021, a resident taxpayer is allowed a credit against the tax otherwise due under this title for the amount of any tax that the department determines is substantially similar to the tax imposed under section 43-1014 for the taxable year and that is imposed by another state of the United States or a political subdivision of such a state, or by the District of Columbia, with respect to the direct and indirect taxable income attributable to the resident taxpayer from a pass-through entity that is also subject to tax under this title.  A credit allowed pursuant to this subsection may not exceed the amount that would have been allowed if the income were taxed at the individual level and not taxed at the entity level.

H. If the taxpayer claims the credit for taxes paid to a foreign country, the taxpayer shall use the conversion rate in effect on the date the taxpayer paid the taxes to the foreign country.

I. For the purposes of this section:

1. "Composite income tax return" means a single income tax return that is filed with another state on behalf of a group of individuals who are partners or shareholders of the partnership or S corporation that filed the return on their behalf.

2. "Entire income on which the other state's or country's tax is imposed" means the other state's or country's income computed under the equivalent of section 43-1094 but does not include any exemption allowable under the equivalent of section 43-1023.

3. "Entire income on which the tax is imposed by this chapter" means Arizona adjusted gross income as defined and computed under section 43-1001 but does not include any exemption allowed under section 43-1023.

4. "Income subject to tax in the other state or country and also taxable under this title" means the portion of income that is included in entire income on which the tax is imposed by this chapter that is also included in the entire income on which the other state's or country's tax is imposed. The taxpayer shall increase or reduce the portion of income that is included in the entire income on which the tax is imposed by this chapter by any related additions under section 43-1021 and by any related subtractions under section 43-1022. The taxpayer shall increase or reduce the portion of income that is included in the entire income on which the other state's or country's tax is imposed by any related additions and subtractions under the other state's equivalent of sections 43-1021 and 43-1022, as applicable.

5. "Net income tax":

(a) Means:

(i) A tax that grants deductions or exemptions from gross income.

(ii) Any tax imposed by another country that qualifies for a credit under sections 901 and 903 of the internal revenue code and the regulations under those sections, even if withheld from income.

(b) Except as specifically included in subdivision (a) of this paragraph, does not include:

(i) A system of taxation that assesses taxes on gross income, gross receipts or gross dividends.

(ii) Taxes withheld from income.

6. "Tax payable under this chapter" means the income tax imposed by this state on the taxpayer's taxable income as defined under section 43-1001 minus any tax credit amount claimed for the taxable year under this article but not including the credit amount allowed under this section.
A.R.S. § 43-1742 — Arizona Code / Title 43 / Chapter 17 / Article 5 / Section 1742
43-1742 Individual income tax credits; applicability
Status: in_force

43-1742. Individual income tax credits; applicability

The credits allowed under chapter 10, article 5 of this title are allowed against the tax due under this chapter to the extent the credit is derived from items otherwise included in computing Arizona small business gross income.  To the extent the credits allowed by this section exceed the tax due under this chapter for the taxable year, the excess amount of the credits claimed by the Arizona small business is allowed as a credit against the tax imposed on the small business taxpayer under chapter 10 of this title.
A.R.S. § 43-1502 — Arizona Code / Title 43 / Chapter 15 / Article 1 / Section 1502
43-1502 Certification as a school tuition organization
Status: in_force

43-1502. Certification as a school tuition organization

A. A nonprofit organization in this state that is exempt or that has applied for exemption from federal taxation under section 501(c)(3) of the internal revenue code may apply to the department of revenue for certification as a school tuition organization, and the department shall certify the school tuition organization if it meets the requirements prescribed by this chapter.  An organization must apply for certification on a form prescribed and furnished on request by the department.

B. The department shall:

1. Maintain a public registry of currently certified school tuition organizations.

2. Make the registry available to the public on request.

3. Post the registry on the department's official website.

C. The department shall send notice by certified mail or by e-mail to a school tuition organization if the department determines that the school tuition organization has engaged in any of the following activities:

1. Failed or refused to allocate at least ninety percent of annual revenues from contributions made for the purposes of sections 20-224.06, 20-224.07, 43-1183 and 43-1184 for educational scholarships or tuition grants.

2. Failed or refused to file the annual reports required by section 43-1506.

3. Limited the availability of scholarships to students of only one school.

4. Encouraged, facilitated or knowingly permitted taxpayers to engage in actions prohibited by this article.

5. Knowingly colluded with any other school tuition organization to circumvent the limits of section 43-1504, subsection C.

6. Failed or refused to meet any of the requirements in section 43-1503, subsection B.

7. Failed or refused to comply with the audit or financial review requirements of section 43-1507.

D. A school tuition organization that receives notice from the department pursuant to subsection C of this section has ninety days to correct the violation identified by the department in the notice.  If a school tuition organization fails or refuses to comply after ninety days, the department may remove the organization from the list of certified school tuition organizations and shall make available to the public notice of removal as soon as possible.  An organization that is removed from the list of certified school tuition organizations must notify any taxpayer who attempts to make a contribution that the contribution is not eligible for the tax credit and offer to refund all donations received after the date of the notice of termination of certification.

E. A school tuition organization may request an administrative hearing on the revocation of its certification as provided by title 41, chapter 6, article 10. Except as provided in section 41-1092.08, subsection H, a decision of the department is subject to judicial review pursuant to title 12, chapter 7, article 6.
A.R.S. § 43-1072 — Arizona Code / Title 43 / Chapter 10 / Article 5 / Section 1072
43-1072 Earned credit for property taxes; residents sixty-five years of age or older; definitions
Status: in_force

43-1072. Earned credit for property taxes; residents sixty-five years of age or older; definitions

A. There shall be allowed to each resident a credit against the taxes imposed by this title for a taxable year for property taxes accrued or rent, or both, paid in that taxable year, in accordance with subsection B of this section, if all of the following apply:

1. Such resident attained the age of sixty-five years prior to or during the taxable year or such resident is a recipient of public monies under title 16 of the social security act, as amended.

2. Such person paid either property taxes or rent during the taxable year.

3. Such person either:

(a) Did not live with a spouse or any other persons and had an income from all sources in the taxable year of less than three thousand seven hundred fifty-one dollars.

(b) Lived with a spouse or one or more persons and the combined income from all sources in the taxable year of all persons residing in the residence was less than five thousand five hundred one dollars.

B. The credit allowed under this section is the amount of property taxes actually paid during the taxable year or the amount computed as follows, whichever is less:

1. For a person eligible under subsection A, paragraph 3, subdivision (a) of this section, according to the following table:

Household Income    Tax Credit

$  0-1,750            $502

1,751-1,850             479

1,851-1,950             457

1,951-2,050             435

2,051-2,150             412

2,151-2,250             390

2,251-2,350             368

2,351-2,450             345

2,451-2,550             323

2,551-2,650             301

2,651-2,750             279

2,751-2,850             256

2,851-2,950             234

2,951-3,050             212

3,051-3,150             189

3,151-3,250             167

3,251-3,350             145

3,351-3,450             123

3,451-3,550             100

3,551-3,650             78

3,651-3,750             56

2. For a person eligible under subsection A, paragraph 3, subdivision (b) of this section, according to the following table:

Household Income    Tax Credit

$  0-2,500            $502

2,501-2,650             479

2,651-2,800             457

2,801-2,950             435

2,951-3,100             412

3,101-3,250             390

3,251-3,400             368

3,401-3,550             345

3,551-3,700             323

3,701-3,850             301

3,851-4,000             279

4,001-4,150             256

4,151-4,300             234

4,301-4,450             212

4,451-4,600             189

4,601-4,750             167

4,751-4,900             145

4,901-5,050             123

5,051-5,200             100

5,201-5,350             78

5,351-5,500             56

C. The owner or lessor of property leased or rented solely for residential purposes, on request, shall furnish to the tenants of the property a written statement of the percentage of rental payments that are attributable to property tax for purposes of this section.

D. Disposition of the claimant's allowable credit shall be as provided below:

1. If the allowable amount of such claim exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against income taxes, after audit by the department, shall be paid in the same manner as a refund granted under chapter 6, article 1 of this title. Refunds made pursuant to this paragraph are subject to setoff under section 42-1122.

2. The amount of any claim otherwise payable for credit for property taxes accrued or rent may be applied by the department against any liability outstanding on the books of the department against the claimant or against the claimant's spouse who was a member of the claimant's household in the taxable year.

E. The department shall make available suitable forms with instructions for claimants. Claimants who certify on the prescribed form that they have no income tax liability for the taxable year shall not be required to file an individual income tax return. The claim shall be in such form as the department may prescribe but shall require the social security numbers of persons who were allowed to claim as dependents for the taxes imposed by this title claimants filing pursuant to this section. The claimant shall also submit a copy of the claimant's property tax statement or a suitable representation of the statement as prescribed by the department. The department shall audit a sufficient number of claims to enforce the provisions of this chapter.

F. No claim with respect to property taxes or with respect to rent shall be allowed or paid unless the claim is actually filed on or before April 15 for the next preceding calendar year. The department may, upon request, grant for a period of not to exceed six months an extension of time for filing the claim.

G. Only one claimant per household per year shall be entitled to a tax credit pursuant to this section.

H. In this section, unless the context otherwise requires:

1. "Claimant" means a person who has filed a claim for credit under this section and was a resident of this state during the entire taxable year. In the case of a claim for rent, the claimant shall have rented property in this state during the entire taxable year except as otherwise provided by this section. If two individuals of a household are able to meet the qualifications for a claimant, they may determine between them as to whom the claimant shall be. If they are unable to agree, the matter shall be referred to the department and its decision shall be final. If a homestead is occupied by two or more individuals and more than one individual is able to qualify as a claimant, and some or all of the qualified individuals are not related, the individuals may determine among them as to whom the claimant shall be. If they are unable to agree, the matter shall be referred to the department, and its decision shall be final.

2. "Gross rent" means rental paid for the right of occupancy of a homestead or space rental paid to a landlord for the parking of a mobile home. If the department is satisfied that the gross rent charge was paid solely for purposes of receiving a credit pursuant to this section, it shall not allow a claim.

3. "Homestead" means the principal dwelling, whether owned or rented by the claimant. "Homestead" may also include a mobile home and the land upon which it is located.

4. "Household" means the household of the claimant and such other persons as resided with the claimant in the claimant's homestead during the taxable year.

5. "Household income" means all income received by all persons of a household in a taxable year while members of the household.

6. "Income" means the sum of the following:

(a) Adjusted gross income as defined by the department.

(b) The amount of capital gains excluded from adjusted gross income.

(c) Nontaxable strike benefits.

(d) Nontaxable interest received from the federal government or any of its instrumentalities.

(e) Payments received from a retirement program paid by this state or any of its political subdivisions.

(f) Payments received from a retirement program paid by the United States through any of its agencies, instrumentalities or programs, except as provided in subsection I of this section.

(g) The gross amount of any pension or annuity not otherwise exempted except as provided in subsection I of this section.

7. "Property taxes" means property taxes levied on a claimant's homestead in this state in any taxable year. For purposes of this paragraph, property taxes are "levied" when the tax roll is delivered to the county treasurer for collection. If a claimant and the claimant's household own their homestead part of the taxable year and rent it or different homesteads for the rest of the same year, provided property taxes were levied on the homestead which was owned by the claimant and the claimant's household, such claimant shall be eligible for a credit pursuant to this section.

I. Income as defined in subsection H, paragraph 6, subdivisions (f) and (g) of this section shall not include monies received from cash public assistance and relief, relief granted under the provisions of this section, railroad retirement benefits, payments received under the federal social security act (49 Stat. 620), payments received under Arizona state unemployment insurance laws, payments received from veterans' disability pensions, payments received as workers' compensation, the gross amount of "loss of time" insurance, and gifts from nongovernmental sources or surplus foods or other relief in kind supplied by a governmental agency.
A.R.S. § 43-1144 — Arizona Code / Title 43 / Chapter 11 / Article 4 / Section 1144
43-1144 Compensation paid in state
Status: in_force

43-1144. Compensation paid in state

Compensation is paid in this state if any of the following apply:

1. The individual's service is performed entirely within this state.

2. The individual's service is performed both within and without the state, but the service performed without the state is incidental to the individual's service within the state.

3. Some of the service is performed in the state and the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state, or the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this state.
A.R.S. § 43-621 — Arizona Code / Title 43 / Chapter 6 / Article 1 / Section 621
43-621 Contribution to I didn't pay enough fund
Status: in_force

43-621. Contribution to I didn't pay enough fund

A. The department shall provide a space on the individual income tax return form in which the taxpayer may designate an amount of the taxpayer's refund as a voluntary contribution to the I didn't pay enough fund established by section 43-211.

B. After subtracting any setoff for debts pursuant to section 42-1122, the department shall subtract the designated amount from the refund due the taxpayer and transfer it to the department for deposit in the I didn't pay enough fund.

C. The taxpayer may also donate any amount to the I didn't pay enough fund, in lieu of or in addition to the designated portion of the tax refund, by an appropriate indication on the return and by including that amount with the return.
A.R.S. § 43-418 — Arizona Code / Title 43 / Chapter 4 / Article 2 / Section 418
43-418 Payroll service company; registration; definitions
Status: in_force

43-418. Payroll service company; registration; definitions

A. For withholding tax returns due to be filed from and after May 31, 2011, a person shall not act as a payroll service company unless the person is registered with the department under this section.

B. A person shall apply to the department electronically for registration as a payroll service company under this subsection and the department shall grant the application if the application indicates that the person will comply with this section.

C. A payroll service company registered with the department under this section shall:

1. Be authorized in writing pursuant to section 42-2003 by each client to act on behalf of the client with respect to this state's withholding tax.

2. Keep a client's monies held for payment of state withholding taxes or other obligations in an account separate from the payroll service company's own monies.

3. Make payments electronically and file returns electronically with the department in compliance with the department's requirements for electronic payments and electronic filing.

4. Electronically provide to the department a client list and electronically update the client list at least monthly, by the first of every month. The client list shall include at least the name, address, tax identification number and federal deposit frequency of each client. The address listed for the client must be the client's actual street or post office box address and not the payroll service company's address.

5. Timely file all returns and timely make all withholding tax payments required under its contracts with its clients.

6. On request, provide to the department, within the time specified in the request, a copy of any contract with a client.

7. Comply with all other requirements of this section or rules adopted pursuant to this section.

D. A payroll service company may terminate its registration by written notice to the department.

E. For the purposes of this section:

1. "Client" means another employer for whom a payroll service company provides payroll services for a fee.

2. "Payroll service company" means a person who has custody or control over a client's monies for the purpose of paying the withheld taxes and filing returns of a client with the department.

3. "Person" means an individual, fiduciary, partnership, corporation, limited liability company, association or other entity organized under the laws of this state or any other jurisdiction.
A.R.S. § 43-1136 — Arizona Code / Title 43 / Chapter 11 / Article 4 / Section 1136
43-1136 Capital gains and losses
Status: in_force

43-1136. Capital gains and losses

A. Capital gains and losses from sales of real property located in this state are allocable to this state.

B. Capital gains and losses from the sales of tangible personal property are allocable to this state if either:

1. The property had a situs in this state at the time of the sale.

2. The taxpayer's commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.

C. Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer's commercial domicile is in this state.
A.R.S. § 43-327 — Arizona Code / Title 43 / Chapter 3 / Article 2 / Section 327
43-327 Recomputation of tax or amended return due after federal adjustment; definition
Status: in_force

43-327. Recomputation of tax or amended return due after federal adjustment; definition

A. If the amount of taxable income for any year of any taxpayer as reported to the United States treasury department is changed or corrected by the commissioner of internal revenue or other officer of the United States or other competent authority, or if a renegotiation of a contract or subcontract with the United States results in a change in taxable income, such taxpayer within ninety days after the final determination of such change or correction or renegotiation shall either:

1. File with the department a copy of the final determination, concede the accuracy of the determination or state any errors and request the department to recompute the tax owed to this state. Recomputing the tax by the department is not considered to be an audit for purposes of section 42-2059.

2. File an amended return as required by the department of revenue.

B. For federal changes to which section 43-1414 applies:

1. If the partnership passes through to each partner the partner's distributive share of any adjustments pursuant to section 43-1414, subsection B, paragraph 2, the statement provided to each partner under section 43-1414, subsection B, paragraph 2 is considered to be a change in taxable income of the partner by the commissioner of internal revenue for the taxable year of the partner in which the reviewed year of the partnership ends.  The partners shall each file an amended return within one hundred fifty days after the final determination of the partnership adjustments by the internal revenue service to report their share of the partnership adjustments as reported to them in the statement provided by the partnership pursuant to section 43-1414, subsection B, paragraph 2.

2. If the partnership is required to report federal changes and pay the tax pursuant to section 43-1414, subsection B, paragraph 1, the partnership shall file the return required under section 43-1414, subsection A and pay the tax within ninety days after the final determination of the partnership adjustments by the internal revenue service.

C. The department may require an amended return if the department lacks the necessary information to recompute the tax owed to this state.

D. Any taxpayer filing an amended return with the United States treasury department shall also file within ninety days of the final determination by the United States treasury department an amended return with the department of revenue, which shall contain such information as it shall require.

E. For the purposes of this section, assessments under a partial agreement, closing agreement covering specific matters, jeopardy or advance payment are considered part of the final determination and must be submitted to the department with the final determination.

F. If a partial agreement, a closing agreement covering specific matters or any other agreement with the United States treasury department would be final except for a federal extension still open for flow through adjustments from other entities or other jurisdictions, the final determination is the date the taxpayer signs the agreement.  Flow through adjustments are finally determined based on criteria specified in subsection H of this section.

G. The department is not required to issue refunds based on any agreement other than a final determination.

H. For the purposes of this section, "final determination" means the appeal rights of both parties have expired or have been exhausted relative to the tax year.
A.R.S. § 43-209 — Arizona Code / Title 43 / Chapter 2 / Article 1 / Section 209
43-209 Collection of tax on income of professional athletes earned in this state; separate accounting for tax revenue from professional football and baseball; definitions
Status: in_force

43-209. Collection of tax on income of professional athletes earned in this state; separate accounting for tax revenue from professional football and baseball; definitions

A. The department shall adopt and enforce rules for the collection of tax under this title on the income earned for services rendered in this state by professional athletes and employees of professional sport franchise organizations.

B. On or before December 31 of each year each professional football franchise organization that is domiciled in this state and each professional baseball franchise organization that compensates individuals for services rendered at a major league baseball facility that is owned by a county stadium district pursuant to title 48, chapter 26 and that is operated by the county stadium district or the professional baseball franchise organization that occupies the facility shall provide to the department the federal taxpayer identification number, assigned pursuant to section 6109 of the internal revenue code, for each resident and nonresident employee of the organization who rendered services in this state for the organization during the calendar year.  Unless due to reasonable cause and not due to wilful neglect, a professional football franchise organization or professional baseball franchise organization that fails to provide taxpayer identification numbers pursuant to this subsection shall pay a civil penalty of $5 for each such number.

C. For purposes of section 42-1116, subsection C, on or before March 31 of each year, the department shall separately account for and report to the state treasurer as a single aggregate amount the total net revenues collected during the preceding calendar year from the imposition of tax under this title on the income from all sources of:

1. Any professional football franchise organization that is domiciled in this state.

2. Resident and nonresident employees of any professional football franchise organization that is domiciled in this state. For reporting purposes under this subsection, the department shall include all income reported on joint returns, regardless of the spouse to whom it is attributable, and the income of an employee's spouse that is reported on a separate return.

D. For the purposes of section 42-1116, subsection D and subject to section 48-4238, on or before March 31 of each year through December 31, 2056, the department shall separately account for and report to the state treasurer as a single aggregate amount the total net revenues collected during the preceding calendar year from the imposition of tax under this title on the income from all sources of:

1. Any professional baseball franchise organization that is domiciled in this state.

2. Resident and nonresident employees who are members of any professional baseball franchise organization that is domiciled in this state.  For reporting purposes under this subsection, the department shall include all income reported on joint returns, regardless of the spouse to whom it is attributable, and the income of an employee's spouse that is reported on a separate return.

3. Resident and nonresident employees who are members of any professional baseball franchise organization that is domiciled outside of this state for services rendered in this state at a major league baseball facility that is owned by a county stadium district pursuant to title 48, chapter 26 and that is operated by the county stadium district or the professional baseball franchise organization that occupies the facility.

E. For the purposes of this section:

1. "Member of any professional baseball franchise organization":

(a) Means an employee who is an active player, a player on the disabled list and any other person required to travel and who travels with and performs services for the professional baseball franchise organization on a regular basis.

(b) Includes coaches, managers, trainers and broadcasters.

2. "Professional baseball franchise organization" means an organization that has the right to field a team for participation in professional baseball contests scheduled by a nationwide league during a regular season held in the months of March through October each year.

3. "Professional football franchise organization" means an organization that has the right to field a team for participation in professional football contests scheduled by a nationwide league during a regular season held in the months of September through December each year.
A.R.S. § 43-563 — Arizona Code / Title 43 / Chapter 5 / Article 5 / Section 563
43-563 Recovery of erroneous refunds
Status: in_force

43-563. Recovery of erroneous refunds

The department of revenue may recover any refund or credit or any portion which is erroneously made or allowed, together with interest at the rate determined pursuant to section 42-1123 from the date the refund was made or the credit allowed, in an action brought within two years after the refund or credit was made in a court of competent jurisdiction in Maricopa county in the name of the department of revenue. The action shall be tried in Maricopa county unless the court with the consent of the department of law orders a change of place of trial. The department of law shall prosecute the action, and the rules of civil procedure in the superior court of Arizona, as amended, relating to service of summons, pleadings, proofs, trials and appeals are applicable to the proceeding.
A.R.S. § 43-1242 — Arizona Code / Title 43 / Chapter 12 / Article 4 / Section 1242
43-1242 Information returns of tax-exempt organizations; definition
Status: in_force

43-1242. Information returns of tax-exempt organizations; definition

A. Every organization that is exempt under section 43-1201, subsection B shall annually file a return with the department on a form prescribed by the department on or before the fifteenth day of the fifth month after the close of the taxable year.  The return shall include:

1. The organization's gross receipts for the year.

2. The organization's expenses incurred within the year.

3. A balance sheet showing the organization's assets, liabilities and net worth as of the beginning and end of the year.

4. Such other information as the department may prescribe by rule.

B. For the purposes of this section, "gross receipts" means the total amount the organization received from all sources during its annual tax year without subtracting any costs or expenses.
A.R.S. § 43-1111 — Arizona Code / Title 43 / Chapter 11 / Article 2 / Section 1111
43-1111 Tax rates for corporations
Status: in_force

43-1111. Tax rates for corporations

There shall be levied, collected and paid for each taxable year upon the entire Arizona taxable income of every corporation, unless exempt under section 43-1126 or 43-1201 or as otherwise provided in this title or by law, taxes in an amount of the greater of fifty dollars or:

1. For taxable years beginning through December 31, 2013, 6.968 per cent of net income.

2. For taxable years beginning from and after December 31, 2013 through December 31, 2014, 6.5 per cent of net income.

3. For taxable years beginning from and after December 31, 2014 through December 31, 2015, 6.0 per cent of net income.

4. For taxable years beginning from and after December 31, 2015 through December 31, 2016, 5.5 per cent of net income.

5. For taxable years beginning from and after December 31, 2016, 4.9 per cent of net income.
A.R.S. § 43-1131 — Arizona Code / Title 43 / Chapter 11 / Article 4 / Section 1131
43-1131 Definitions
Status: in_force

43-1131. Definitions

As used in this article, unless the context otherwise requires:

1. "Business income" means income arising from transactions and activity in the regular course of the taxpayer's trade or business and includes income from tangible and intangible property if the acquisition, management and disposition of the property constitute integral parts of the taxpayer's regular trade or business operations.

2. "Commercial domicile" means the principal place from which the trade or business of the taxpayer is directed or managed.

3. "Compensation" means wages, salaries, commissions and any other form of remuneration paid to employees for personal services.

4. "Nonbusiness income" means all income other than business income.

5. "Sales" means all gross receipts of the taxpayer not allocated under this article.

6. "State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States and any foreign country or political subdivision thereof.

7. "Taxpayer" means any person subject to the tax imposed by this title.
A.R.S. § 43-104 — Arizona Code / Title 43 / Chapter 1 / Article 1 / Section 104
43-104 Definitions
Status: in_force

43-104. Definitions

In this title, unless the context otherwise requires:

1. "Assessment" includes a  proposed additional assessment.

2. "Board" means the state board of tax appeals or, if applicable, a division of the state board.

3. "Corporation" means a corporation, joint stock company, bank, insurance company, business trust or so-called "Massachusetts trust", investment company or building and loan association and any other association whether incorporated or unincorporated.

4. "Department" means the department of revenue, the director or the director's authorized delegate, as the context requires.

5. "Director" means the director of the department of revenue.

6. "Fiduciary" means a guardian, trustee, personal representative, executor, administrator, receiver or conservator, whether individual or corporate, or any person acting in any fiduciary capacity for any person, estate or trust.

7. "Fiscal year" means an accounting period of twelve months ending on the last day of any month other than December.

8. "Foreign country" means any jurisdiction other than one embraced within the United States.

9. "Income derived from or attributable to sources within this state" includes income from tangible or intangible property located or having a situs in this state and income from any activities carried on in this state, regardless of whether carried on in intrastate, interstate or foreign commerce.

10. "Income tax act of 1954" means this title, as enacted by Laws 1954, chapter 65, as amended.

11. "Income year" means "taxable year".

12. "Individual" means a natural person.

13. "Military or naval forces of the United States" includes the army, the navy, the air force, the marine corps, the coast guard, the army nurse corps, female, the women's army auxiliary corps, the navy nurse corps, female, and the women's reserve branch of the naval reserve, and all auxiliary branches of service.

14. "Nonresident" means every individual other than a resident.

15. "Paid or incurred" and "paid or accrued" shall be construed according to the method of accounting on the basis of which the taxable income is computed under this title.

16. "Partner" means a member of a partnership.

17. "Partnership" includes a syndicate, group, pool, joint venture or other unincorporated organization, through or by means of which any business, financial operation or venture is carried on and that is not, within the meaning of this title, a trust, estate or corporation.

18. "Person" includes individuals, fiduciaries, partnerships and corporations.

19. "Resident" includes:

(a) Every individual who is in this state for other than a temporary or transitory purpose.

(b) Every individual who is domiciled in this state and who is outside the state for a temporary or transitory purpose. Any individual who is a resident of this state continues to be a resident even though temporarily absent from the state.

(c) Every individual who spends in the aggregate more than nine months of the taxable year within this state shall be presumed to be a resident. The presumption may be overcome by competent evidence that the individual is in this state for a temporary or transitory purpose.

20. "Small business taxpayer" means any individual taxpayer who reports on the taxpayer's federal income tax return any income that constitutes Arizona small business gross income as defined in section 43-1701.

21. "State" includes the states of the United States, the District of Columbia and the possessions of the United States.

22. "Tax" means the taxes imposed under this title.

23. "Taxable year" means:

(a) The calendar year or the fiscal year, ending during such calendar year, on the basis of which the taxable income is computed under this title.

(b) If no fiscal year has been established, the calendar year.

(c) In the case of a return made for a fractional part of a year under this title or under rules prescribed by the department, the period for which the return is made.

24. "Taxpayer":

(a) Means any person subject to a tax imposed by this title.

(b) Does not include the United States, this state, counties, cities, towns, school districts or other political subdivisions or units of this state or the federal government.

25. "Trade or business" includes the performance of the functions of a public office.

26. "United States", when used in a geographical sense, includes the states, the District of Columbia and the possessions of the United States.
A.R.S. § 43-307 — Arizona Code / Title 43 / Chapter 3 / Article 1 / Section 307
43-307 Corporation returns
Status: in_force

43-307. Corporation returns

A. Every corporation subject to the tax imposed by this title shall make a return to the department. Every corporation return required by this title to be filed with the department shall be signed by one or more of the following officers:

1. The president.

2. The treasurer.

3. Any other principal officer of the taxpayer.

B. If receivers, trustees in bankruptcy or assignees are operating the property or business of a corporation, such receivers, trustees or assignees shall make returns for such corporation in the same manner and form as such a corporation is required to make a return.  Any tax due on the basis of returns made by receivers, trustees or assignees shall be collected in the same manner as if collected from the corporation of whose business or property they have custody and control.

C. This section applies regardless of whether a corporation is required to file a return under the internal revenue code or whether the corporation has any federal taxable income for the taxable year.

D. An out-of-state corporation that is temporarily in this state and whose only income in this state is from performing disaster recovery from a declared disaster during a disaster period as defined in section 42-1130 is not required to file a corporation return in this state.  This subsection does not preclude the corporation from being included in a consolidated or combined group return subject to section 42-1130, subsection C.
A.R.S. § 43-210 — Arizona Code / Title 43 / Chapter 2 / Article 1 / Section 210
43-210 Premium tax credit; health insurance; certification of qualified persons; violation; classification; definitions
Status: in_force

43-210. Premium tax credit; health insurance; certification of qualified persons; violation; classification; definitions

A. The department shall issue a certificate of eligibility to a person who files an application with the department in the form and manner prescribed by the department on a first come, first served basis, subject to subsection E.  An application submitted to the department under this section shall contain or be verified by a written declaration that it is made under penalty of perjury.  A person is entitled to receive a certificate if the department determines monies are available for this program pursuant to subsection E, the person has never before received a certificate and the person is either:

1. A small business.

2. An individual who satisfies all of the following:

(a) Earns less than two hundred fifty per cent of the federal poverty level.

(b) Is a legal resident of this state and a citizen of the United States or a legal resident alien.

(c) Has not been covered under a health insurance policy for at least six consecutive months before the application.

(d) Is not enrolled in the Arizona health care cost containment system, medicare or any other state or federal government health insurance program.

B. A health care insurer that enrolls an individual or small business certified pursuant to this section shall deduct the amount of the certificate from the premium.

C. For an individual, the amount of the certificate is the lesser of:

1. One thousand dollars for coverage on a single person, five hundred dollars for coverage on a child or three thousand dollars for family coverage.

2. Fifty per cent of the health insurance premium.

D. For a small business, the amount of the certificate is the lesser of:

1. One thousand dollars for coverage on each single employee or three thousand dollars for each employee who elects family coverage.

2. Fifty per cent of the health insurance premium.

E. A health care insurer that enrolls an individual or small business certified pursuant to this section shall notify the department of the enrollment and the amount of premium tax credit it intends to claim for the current calendar year no later than the fifteenth day of the month following commencement of coverage.  The department shall not issue any certificates under this section that exceed in the aggregate a combined total of five million dollars in any calendar year.

F. The initial certificate is valid for a period of ninety days after the date the department issues the certificate.  If the individual or small business obtains health care insurance within this period of time the certificate is valid for one year from commencement of coverage.

G. Sixty days before the expiration of the certificate the department shall review the status of the individual or small business. If the individual or small business continues to meet the qualifications pursuant to subsection A, paragraph 1 or paragraph 2, subdivisions (a), (b) and (d), the department shall reissue the certificate of eligibility.

H. Individuals and small businesses are eligible for a maximum of two reissued certificates of eligibility.

I. This section does not guarantee health insurance coverage to an individual or small business pursuant to this section.

J. The department shall issue the certificate of eligibility in the name of a specific individual and the certificate is nontransferable.  A person who sells, conveys, transfers or assigns the certificate to another person or attempts to sell, convey, transfer or assign the certificate to another person is guilty of a class 2 misdemeanor.

K. For the purposes of this section:

1. "Family" means any of the following:

(a) An adult and the adult's spouse.

(b) An adult, the adult's spouse and all unmarried dependent children under nineteen years of age or under twenty-five years of age if a full-time student.

(c) An adult and the adult's unmarried dependent children under nineteen years of age or under twenty-five years of age if a full-time student.

2. "Federal poverty level" means the federal poverty level guidelines published annually by the United States department of health and human services.

3. "Health care insurer" means a disability insurer, group disability insurer, blanket disability insurer, health care services organization, hospital service corporation, medical service corporation or hospital and medical service corporation that provides health insurance in this state.

4. "Health insurance" means a licensed health care plan or arrangement that pays for or furnishes medical or health care services and that is issued by a health care insurer.

5. "Small business" means a business that has been in existence for at least one calendar year in this state, that had not provided health insurance to its employees for at least six consecutive months before the application and that had at least two and no more than twenty-five employees during the most recent calendar year.
A.R.S. § 43-1702 — Arizona Code / Title 43 / Chapter 17 / Article 1 / Section 1702
43-1702 Rules
Status: in_force

43-1702. Rules

The department may adopt rules and publish and prescribe forms necessary to administer this chapter.
A.R.S. § 43-645 — Arizona Code / Title 43 / Chapter 6 / Article 3 / Section 645
43-645 Interest on related items or where related taxpayers exist
Status: in_force

43-645. Interest on related items or where related taxpayers exist

A. If the correction of an erroneous inclusion or deduction of an item or items in the computation of income of a trust, estate or individual for any year results in an overpayment for such year by such trust, estate or individual and also results in a deficiency for the same year for a grantor of such trust or beneficiary of such estate or trust or spouse or child of such individual or spouse of such child, the overpayment, if the period within which credit for the overpayment may be allowed has not expired, shall be credited on the deficiency if the period within which the deficiency may be proposed has not expired, and the balance, if any, shall be credited or refunded. No interest shall be assessed on such portion of the deficiency as is extinguished by the credit for the period of time subsequent to the date the overpayment was made.

B. If the correction of an erroneous inclusion or deduction of an item or items in the computation of income of a grantor or a trust, beneficiary of an estate or trust, a child, or spouse of such child, or a spouse for any year results in an overpayment for such year by such grantor, beneficiary, child or spouse, and also results in a deficiency for the same year for such trust, estate or individual, the overpayment, if the period within which credit for the overpayment may be allowed has not expired, shall be credited on the deficiency, if the period within which the deficiency may be proposed has not expired, and the balance, if any, shall be credited or refunded. No interest shall be assessed on such portion of the deficiency as is extinguished by the credit for the period of time subsequent to the date the overpayment was made.

C. This section is not intended, nor shall it be construed as a limitation on the department's right to offset or recoup barred assessments against overpayments.
A.R.S. § 43-1175 — Arizona Code / Title 43 / Chapter 11 / Article 6 / Section 1175
43-1175 Credit for employment of temporary assistance for needy families recipients
Status: in_force

43-1175. Credit for employment of temporary assistance for needy families recipients

A. A credit is allowed against the taxes imposed by this title for net increases in qualified employment by the taxpayer of recipients of temporary assistance for needy families as defined in section 46-101 who are residents of this state. The amount of the credit is equal to the sum of the following:

1. One-fourth of the taxable wages paid to each employee in qualified employment positions, not to exceed $500 per qualified employment position, in the first year or partial year of employment. Wages that were subsidized as provided by section 46-299 shall not be included.

2. One-third of the taxable wages paid to each employee in qualified employment positions, not to exceed $1,000 per qualified employment position, in the second year of continuous employment. Wages that were subsidized as provided by section 46-299 shall not be included.

3. One-half of the taxable wages paid to each employee in qualified employment positions, not to exceed $1,500 per qualified employment position, in the third year of continuous employment. Wages that were subsidized as provided by section 46-299 shall not be included.

B. The credit allowed in this section is in lieu of any wage expense deduction taken for state tax purposes.

C. To qualify for a credit under this section:

1. All of the employees with respect to whom a credit is claimed must reside in this state and must be recipients of temporary assistance for needy families as defined in section 46-101 at the time the employee is hired.

2. A qualified employment position must meet all of the following requirements:

(a) The position must be classified as full-time employment.

(b) The employment must include health insurance coverage for the employee if the employer offers this coverage for employees who are not recipients of temporary assistance for needy families.

(c) The employer must pay compensation at least equal to the minimum wage or a wage comparable to that paid to employees who are not receiving temporary assistance for needy families based on the employee's training, skills and job classification.

(d) The employee must have been employed for at least ninety days during the first taxable year. An employee who is hired during the last ninety days of the taxable year shall be considered a new employee during the next taxable year. Periods for which the employee's wages were subsidized as provided by section 46-299 shall not be included as periods of employment.

(e) The employee was not employed by the taxpayer within twelve months before the current date of hire.

(f) The employee position is not eligible for any other employment credit pursuant to this title based on wages paid.

D. The net increase in the number of qualified employment positions shall be determined by comparing the average number of qualified employment positions during the taxable year with the immediately preceding taxable year based on the taxpayer’s report to the department of economic security for unemployment purposes.

E. If the allowable tax credit exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against income taxes may be carried forward as a tax credit against subsequent years' income tax liability for the period, not to exceed five consecutive taxable years.

F. Co-owners of a business, including corporate partners in a partnership, may claim only the pro rata share of the credit allowed under this section based on the ownership interest. Only co-owners that are corporations may claim a share of the credit allowed under this section.  The total of the credits allowed all of the owners of the business may not exceed the amount that would have been allowed for a sole owner of the business.

G. The department may adopt rules necessary for the administration of this section.
A.R.S. § 43-1082 — Arizona Code / Title 43 / Chapter 10 / Article 5 / Section 1082
43-1082 Credit for motion picture production costs; qualifications; data maintenance; rules; definitions
Status: in_force

43-1082. Credit for motion picture production costs; qualifications; data maintenance; rules; definitions

(Rpld. 1/1/44)

A. For taxable years beginning from and after December 31, 2022, a tax credit is allowed against production costs paid by a motion picture production company in this state that are subject to taxation by this state and that are directly attributable to a motion picture production. The amount of the credit shall be determined as follows:

1. An amount equal to a percentage of the total amount of the qualified production costs as approved by the Arizona commerce authority pursuant to section 41-1517 as follows:

(a) For a motion picture production company that spends up to $10,000,000, fifteen percent.

(b) For a motion picture production company that spends more than $10,000,000 but less than $35,000,000, seventeen and one-half percent.

(c) For a motion picture production company that spends more than $35,000,000, twenty percent.

2. An additional two and one-half percent of the motion picture production company's production labor costs related to positions held by residents of this state as approved by the Arizona commerce authority pursuant to section 41-1517.

3. If the motion picture production company either:

(a) Uses a qualified production facility in this state to produce the motion picture production, an additional two and one-half percent of the total amount of qualified production costs as approved by the Arizona commerce authority pursuant to section 41-1517.

(b) Films primarily at a practical location, produces and films the motion picture production primarily in this state and performs all preproduction, postproduction and editing at a qualified production facility in this state, an additional two and one-half percent of the total qualified production costs as approved by the Arizona commerce authority pursuant to section 41-1517.

4. An additional two and one-half percent of the total amount of qualified production costs as approved by the Arizona commerce authority pursuant to section 41-1517 if the motion picture production is produced and filmed in association with a long-term tenant of a qualified production facility.

B. Tax credits under this section may not exceed the amount provided in the postapproval issued by the Arizona commerce authority pursuant to section 41-1517, subsection H. The taxpayer must include a copy of the postapproval with the taxpayer's income tax return for the taxable year in which the Arizona commerce authority issued the postapproval.

C. The department may not allow a tax credit under this section to a taxpayer who has a delinquent tax balance owed to the department under this title.

D. To qualify for a tax credit under this section, the motion picture production company must:

1. Do either of the following:

(a) Use a qualified production facility in this state to produce the motion picture production.

(b) If the motion picture production is filmed primarily at a practical location, produce and film the motion picture production primarily in this state and perform all preproduction, postproduction and editing at an industry standard facility, if such a facility for those functions is available.

2. Maintain the motion picture production company's production labor positions in this state.

3. Include in the credits for each motion picture production an acknowledgment that the production was filmed in Arizona.

4. Receive preapproval and postapproval from the Arizona commerce authority pursuant to section 41-1517.

5. Claim the tax credit by using the form prescribed by the department and include the form with the motion picture production company's income tax return for the taxable year in which the Arizona commerce authority issued the postapproval.

E. Co-owners of a motion picture production company, including partners in a partnership, members of a limited liability company and shareholders of an S corporation, as defined in section 1361 of the internal revenue code, may each claim the pro rata share of the tax credit allowed under this section based on ownership interests.  The total of the tax credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.

F. If the allowable tax credit for a taxable year exceeds the income taxes otherwise due on the claimant's income, or if there are no state income taxes due on the claimant's income, the amount of the claim not used as an offset against income taxes shall be paid to the taxpayer in the same manner as a refund under section 42-1118. Refunds made pursuant to this subsection are subject to setoff under section 42-1122. If the department determines that a refund is incorrect or invalid, the excess refund may be treated as a tax deficiency pursuant to section 42-1108.

G. The department shall maintain annual data on the total amount of monies credited pursuant to this section and shall provide the data to the Arizona commerce authority on request.

H. The department shall adopt fees and rules and publish and prescribe forms and procedures as necessary to administer this section and provide administrative support services.

I. The tax credit allowed by this section is in lieu of any allowance for state tax purposes of a deduction of those expenses allowed by the internal revenue code.

J. For the purposes of this section:

1. "Long-term tenant" means a person that enters into a lease of at least five years for the use of a qualified production facility.

2. "Motion picture production" has the same meaning prescribed in section 41-1517.

3. "Motion picture production company" has the same meaning prescribed in section 41-1517.

4. "Practical location" has the same meaning prescribed in section 41-1517.

5. "Production costs" has the same meaning prescribed in section 41-1517.

6. "Production labor" has the same meaning prescribed in section 41-1517.

7. "Qualified production facility" has the same meaning prescribed in section 41-1517.
A.R.S. § 43-1021 — Arizona Code / Title 43 / Chapter 10 / Article 3 / Section 1021
43-1021 Addition to Arizona gross income
Status: in_force

43-1021. Addition to Arizona gross income

In computing Arizona adjusted gross income, the following amounts shall be added to Arizona gross income:

1. A beneficiary's share of the fiduciary adjustment to the extent that the amount determined by section 43-1333 increases the beneficiary's Arizona gross income.

2. An amount equal to the ordinary income portion of a lump sum distribution that was excluded from federal adjusted gross income pursuant to the special rule for individuals who attained fifty years of age before January 1, 1986 under Public Law 99-514, section 1122(h)(3).

3. The amount of interest income received on obligations of any state, territory or possession of the United States, or any political subdivision thereof, located outside of this state, reduced, for taxable years beginning from and after December 31, 1996, by the amount of any interest on indebtedness and other related expenses that were incurred or continued to purchase or carry those obligations and that are not otherwise deducted or subtracted in arriving at Arizona gross income.

4. The excess of a partner's share of partnership taxable income required to be included under chapter 14, article 2 of this title over the income required to be reported under section 702(a)(8) of the internal revenue code.

5. The excess of a partner's share of partnership losses determined pursuant to section 702(a)(8) of the internal revenue code over the losses allowable under chapter 14, article 2 of this title.

6. Any amount of agricultural water conservation expenses that were deducted pursuant to the internal revenue code for which a credit is claimed under section 43-1084.

7. The amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken under section 43-1081.01 or that is pollution control equipment for which a credit was taken before taxable year 2022 exceeds the amount of depreciation or amortization computed pursuant to the internal revenue code on the Arizona adjusted basis of the property.

8. The amount by which the adjusted basis computed under the internal revenue code with respect to property for which a credit was claimed under section 43-1074.02 or 43-1081.01 or that is pollution control equipment for which a credit was taken before taxable year 2022 and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under section 43-1074.02 or 43-1081.01 or for pollution control equipment, the section in which the credit was taken, as applicable.

9. The deduction referred to in section 1341(a)(4) of the internal revenue code for restoration of a substantial amount held under a claim of right.

10. The amount by which a net operating loss carryover or capital loss carryover allowable pursuant to section 1341(b)(5) of the internal revenue code exceeds the net operating loss carryover or capital loss carryover allowable pursuant to section 43-1029, subsection F.

11. The amount of any depreciation allowance allowed pursuant to section 167(a) of the internal revenue code to the extent not previously added.

12. The amount of a nonqualified withdrawal, as defined in section 15-1871, from a college savings plan established pursuant to section 529 of the internal revenue code that is made to a distributee to the extent the amount is not included in computing federal adjusted gross income, except that the amount added under this paragraph shall not exceed the difference between the amount subtracted under section 43-1022 in prior taxable years and the amount added under this section in any prior taxable years.

13. If a subtraction is or has been taken by the taxpayer under section 43-1024, in the current or a prior taxable year for the full amount of eligible access expenditures paid or incurred to comply with the requirements of the Americans with disabilities act of 1990 (P.L. 101-336) or title 41, chapter 9, article 8, any amount of eligible access expenditures that is recognized under the internal revenue code, including any amount that is amortized according to federal amortization schedules, and that is included in computing taxable income for the current taxable year.

14. For taxable years beginning from and after December 31, 2017, the amount of any net capital loss included in Arizona gross income for the taxable year that is derived from the exchange of one kind of legal tender for another kind of legal tender. For the purposes of this paragraph:

(a) "Legal tender" means a medium of exchange, including specie, that is authorized by the United States Constitution or Congress to pay debts, public charges, taxes and dues.

(b) "Specie" means coins having precious metal content.

15. For taxable years beginning from and after December 31, 2021, the amount deducted by the partnership or S corporation pursuant to the internal revenue code for the amount paid to this state under section 43-1014 and for taxes that the department determines are substantially similar to the tax imposed under section 43-1014.  This amount shall be reflected in the partner's or shareholder's Arizona gross income and the partnership's or S corporation's Arizona taxable income.

16. The amount of any motion picture production costs that was deducted pursuant to the internal revenue code for which a tax credit is claimed under section 43-1082.
A.R.S. § 43-1024 — Arizona Code / Title 43 / Chapter 10 / Article 3 / Section 1024
43-1024 Americans with disabilities act access expenditures
Status: in_force

43-1024. Americans with disabilities act access expenditures

A. For taxable years beginning from and after December 31, 2017, in computing Arizona adjusted gross income, a subtraction is allowed under section 43-1022, paragraph 24 for eligible business access expenditures paid or incurred by the taxpayer during the taxable year in order to comply with the requirements of the Americans with disabilities act of 1990 (P.L. 101-336) or title 41, chapter 9, article 8 by retrofitting developed real property that was originally placed in service at least ten years before the current taxable year.

B. For the purposes of this section, eligible business access expenditures include reasonable and necessary amounts paid or incurred to:

1. Remove any barriers that prevent a business from being accessible to or usable by individuals with disabilities.

2. Provide qualified interpreters or other methods of making audio materials available to hearing-impaired individuals.

3. Provide qualified readers, taped texts and other effective methods of making visually delivered materials available to individuals with visual impairments.

4. Acquire or modify equipment or devices for individuals with disabilities.

5. Provide other similar services, modifications, materials or equipment.

C. A taxpayer who has been cited for noncompliance with the Americans with disabilities act of 1990 or title 41, chapter 9, article 8 by either federal or state enforcement officials is ineligible for a subtraction under this section for any expenditure required to cure the cited violation.
A.R.S. § 43-1011; Version 2 — Arizona Code / Title 43 / Chapter 10 / Article 2 / Section 1011; Version 2
43-1011; Version 2 Taxes and tax rates
Status: in_force

43-1011. Taxes and tax rates

(L21, Ch. 412, sec. 15.)

A. There shall be levied, collected and paid for each taxable year on the entire taxable income of every resident of this state and on the entire taxable income of every nonresident that is derived from sources within this state taxes determined in the following manner:

1. For taxable years beginning from and after December 31, 1996 through December 31, 1997:

(a) In the case of a single person or a married person filing separately:

If taxable income is:     The tax is:

$0 — $10,000     2.90% of taxable income

$10,001 — $25,000      $290, plus 3.30% of the excess over $10,000

$25,001 — $50,000      $785, plus 3.90% of the excess over $25,000

$50,001 — $150,000     $1,760, plus 4.80% of the excess over $50,000

$150,001 and over $6,560, plus 5.17% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is:     The tax is:

$0 — $20,000      2.90% of taxable income

$20,001 — $50,000      $580, plus 3.30% of the excess over $20,000

$50,001 — $100,000     $1,570, plus 3.90% of the excess over $50,000

$100,001 — $300,000    $3,520, plus 4.80% of the excess over $100,000

$300,001 and over $13,120, plus 5.17% of the excess over $300,000

2. For taxable years beginning from and after December 31, 1997 through December 31, 1998:

(a) In the case of a single person or a married person filing separately:

If taxable income is:     The tax is:

$0 — $10,000     2.88% of taxable income

$10,001 — $25,000      $288, plus 3.24% of the excess over $10,000

$25,001 — $50,000      $774, plus 3.82% of the excess over $25,000

$50,001 — $150,000     $1,729, plus 4.74% of the excess over $50,000

$150,001 and over $6,469, plus 5.10% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is:     The tax is:

$0 — $20,000     2.88% of taxable income

$20,001 — $50,000      $576, plus 3.24% of the excess over $20,000

$50,001 — $100,000     $1,548, plus 3.82% of the excess over $50,000

$100,001 — $300,000    $3,458, plus 4.74% of the excess over $100,000

$300,001 and over $12,938, plus 5.10% of the excess over $300,000

3. For taxable years beginning from and after December 31, 1998 through December 31, 2005:

(a) In the case of a single person or a married person filing separately:

If taxable income is:     The tax is:

$0 — $10,000     2.87% of taxable income

$10,001 — $25,000      $287, plus 3.20% of the excess over $10,000

$25,001 — $50,000      $767, plus 3.74% of the excess over $25,000

$50,001 — $150,000     $1,702, plus 4.72% of the excess over $50,000

$150,001 and over $6,422, plus 5.04% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is:     The tax is:

$0 — $20,000     2.87% of taxable income

$20,001 — $50,000      $574, plus 3.20% of the excess over $20,000

$50,001 — $100,000     $1,534, plus 3.74% of the excess over $50,000

$100,001 — $300,000    $3,404, plus 4.72% of the excess over $100,000

$300,001 and over $12,844, plus 5.04% of the excess over $300,000

4. For taxable years beginning from and after December 31, 2005 through December 31, 2006:

(a) In the case of a single person or a married person filing separately:

If taxable income is:     The tax is:

$0 — $10,000     2.73% of taxable income

$10,001 — $25,000      $273, plus 3.04% of the excess over $10,000

$25,001 — $50,000      $729, plus 3.55% of the excess over $25,000

$50,001 — $150,000     $1,617, plus 4.48% of the excess over $50,000

$150,001 and over $6,097, plus 4.79% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is:     The tax is:

$0 — $20,000     2.73% of taxable income

$20,001 — $50,000      $546, plus 3.04% of the excess over $20,000

$50,001 — $100,000     $1,458, plus 3.55% of the excess over $50,000

$100,001 — $300,000    $3,233, plus 4.48% of the excess over $100,000

$300,001 and over $12,193, plus 4.79% of the excess over $300,000

5. Subject to subsections B and C of this section, for taxable years beginning from and after December 31, 2006 through December 31, 2018:

(a) In the case of a single person or a married person filing separately:

If taxable income is:     The tax is:

$0 — $10,000     2.59% of taxable income

$10,001 — $25,000      $259, plus 2.88% of the excess over $10,000

$25,001 — $50,000      $691, plus 3.36% of the excess over $25,000

$50,001 — $150,000     $1,531, plus 4.24% of the excess over $50,000

$150,001 and over $5,771, plus 4.54% of the excess over $150,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is:                 The tax is:

$0 — $20,000                       2.59% of taxable income

$20,001 — $50,000      $518, plus 2.88% of the excess over $20,000

$50,001 — $100,000     $1,382, plus 3.36% of the excess over $50,000

$100,001 — $300,000    $3,062, plus 4.24% of the excess over $100,000

$300,001 and over $11,542, plus 4.54% of the excess over $300,000

6. Subject to subsections D and E of this section, for taxable years beginning from and after December 31, 2018 through December 31, 2021:

(a) In the case of a single person or a married person filing separately:

If taxable income is:                 The tax is:

$0 — $26,500                       2.59% of taxable income

$26,501 — $53,000                        $686, plus 3.34% of the amount

over $26,500

$53,001 — $159,000                 $1,571, plus 4.17% of the

amount over $53,000

$159,001 and over                   $5,991, plus 4.50% of the amount

over $159,000

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is:                 The tax is:

$0 — $53,000                       2.59% of taxable income

$53,001 — $106,000                 $1,373, plus 3.34% of the amount                                        over $53,000

$106,001 — $318,000                $3,143, plus 4.17% of the amount

over $106,000

$318,001 and over $11,983, plus 4.50% of the amount over $318,000

7. Subject to subsections E and F of this section, for taxable years beginning from and after December 31, 2021 through December 31 of the year in which notice is provided to the department pursuant to section 43-243, subsection A or subsection B, paragraph 1:

(a) In the case of a single person or a married person filing separately:

If taxable income is:                 The tax is:

$0 — $27,272                       2.55% of taxable income

$27,273 and over                    $695, plus 2.98% of the amount

over $27,272

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is:                 The tax is:

$0 — $54,544                       2.55% of taxable income

$54,545 and over  $1,391, plus 2.98% of the amount over $54,544

8. Subject to subsections E and F of this section, for taxable years beginning from and after December 31 of the year in which notice is provided to the department pursuant to section 43-243, subsection A or subsection B, paragraph 1 through December 31 of the year in which notice is provided to the department pursuant to section 43-243, subsection B, paragraph 2:

(a) In the case of a single person or a married person filing separately:

If taxable income is:                 The tax is:

$0 — $27,272                       2.53% of taxable income

$27,273 and over                    $690, plus 2.75% of the amount

over $27,272

(b) In the case of a married couple filing a joint return or a single person who is a head of a household:

If taxable income is:                 The tax is:

$0 — $54,544                       2.53% of taxable income

$54,545 and over  $1,380, plus 2.75% of the amount over $54,544

9. Subject to subsection F of this section, for taxable years beginning from and after December 31 of the year in which notice is provided to the department pursuant to section 43-243, subsection B, paragraph 2, the tax is 2.5% of taxable income.

B. For the taxable year beginning from and after December 31, 2014 through December 31, 2015, the department shall adjust the income dollar amounts for each rate bracket prescribed by subsection A, paragraph 5 of this section according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year.

C. For each taxable year beginning from and after December 31, 2015 through December 31, 2018, the department shall adjust the income dollar amounts for each rate bracket prescribed by subsection A, paragraph 5 of this section according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year.

D. For each taxable year beginning from and after December 31, 2019 through December 31, 2021, the department shall adjust the income dollar amount for each rate bracket prescribed by subsection A, paragraph 6 of this section according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year.

E. For each taxable year beginning from and after December 31, 2021, the department shall adjust the income dollar amount for each rate bracket prescribed by subsection A, paragraphs 7 and 8 of this section, as applicable, according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar. The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year.
A.R.S. § 43-1089.01 — Arizona Code / Title 43 / Chapter 10 / Article 5 / Section 1089.01
43-1089.01 Tax credit; public school fees and contributions; definitions
Status: in_force

43-1089.01. Tax credit; public school fees and contributions; definitions

A. A credit is allowed against the taxes imposed by this title for the amount of any fees paid or cash contributions made by a taxpayer or on the taxpayer's behalf pursuant to section 43-401, subsection G during the taxable year to a public school located in this state for the following public school purposes:

1. Standardized testing for college credit or readiness offered by a widely recognized and accepted educational testing organization.

2. The career and technical education industry certification assessment.

3. Preparation courses and materials for standardized testing.

4. Cardiopulmonary resuscitation training pursuant to section 15-718.01.

5. Extracurricular activities.

6. Character education programs.

7. From and after June 30, 2019 through June 30, 2029:

(a) Acquiring capital items, as defined in the uniform system of financial records, including those items listed in section 15-903, subsection C, paragraphs 2 through 8.

(b) Community school meal programs. An amount paid by an individual to receive a meal or a meal card does not qualify as a fee or donation for community school meal programs.

(c) Student consumable health care supplies.

(d) Playground equipment and shade structures for playground equipment.

B. The amount of the credit shall not exceed:

1. $200 for a single individual or a head of household.

2. $400 for a married couple filing a joint return.

C. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed for a joint return.

D. The credit allowed by this section is in lieu of any deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.

E. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.

F. The site council of the public school that receives contributions that are not designated for a specific purpose shall determine how the contributions are used at the school site.  If a charter school does not have a site council, the principal, director or chief administrator of the charter school shall determine how the contributions that are not designated for a specific purpose are used at the school site. If at the end of a fiscal year a public school has unspent contributions that were previously designated for a specific purpose or program and that purpose or program has been discontinued or has not been used for two consecutive fiscal years, these contributions shall be considered undesignated in the following fiscal year for the purposes of this subsection, and the site council may transfer these undesignated contributions to any school within the same school district.

G. A public school that receives fees or a cash contribution pursuant to subsection A of this section shall report to the department, in a form prescribed by the department, by February 28 of each year the following information:

1. The total number of fee and cash contribution payments received during the previous calendar year.

2. The total dollar amount of fees and contributions received during the previous calendar year.

3. The total dollar amount of fees and contributions spent by the school during the previous calendar year, categorized by specific standardized testing, preparation courses and materials for standardized testing, extracurricular activity or character education program.

H. For the purposes of this section, a contribution for which a credit is claimed and that is made on or before the fifteenth day of the fourth month following the close of the taxable year may be applied to either the current or preceding taxable year and is considered to have been made on the last day of that taxable year.

I. For the purposes of this section:

1. "Career and technical education industry certification assessment" means an assessment for career and technical preparation programs for pupils.

2. "Character education programs" means a program described in section 15-719.

3. "Community school meal program" means a school meal program that takes place before or after the regular school day on school property.

4. "Extracurricular activities" means school-sponsored activities that may require enrolled students to pay a fee in order to participate, including fees for:

(a) Band uniforms.

(b) Equipment or uniforms for varsity athletic activities.

(c) Scientific laboratory materials.

(d) In-state or out-of-state trips that are solely for competitive events. Extracurricular activities do not include any senior trips or events that are recreational, amusement or tourist activities.

5. "Public school" means a school that is part of a school district, a career technical education district or a charter school.

6. "Standardized testing for college credit or readiness" includes the SAT, PSAT, ACT, advanced placement and international baccalaureate diploma tests and other similar tests.

7. "Student consumable health care supplies" includes tissues, hand wipes, bandages and other health care consumables that are generally used by children.

8. "Widely recognized and accepted educational testing organization" means the college board, the ACT, the international baccalaureate and other organizations that are widely recognized and accepted by colleges and universities in the United States and that offer college credit and readiness examinations.
A.R.S. § 43-407 — Arizona Code / Title 43 / Chapter 4 / Article 1 / Section 407
43-407 Extension of withholding to unemployment compensation payments
Status: in_force

43-407. Extension of withholding to unemployment compensation payments

A. For the purposes of this title, any payment of unemployment compensation to an individual who has made an election to have state income tax withheld as specified in section 23-792, subsection A, paragraph 4, shall be treated as a payment of wages by an employer to an employee for a payroll period. The amount withheld at the time of payment shall be ten per cent of federal income tax deducted and withheld.

B. An election that unemployment compensation payments be subject to withholding under this section shall be made by the payee in writing to the person making unemployment compensation payments and shall be accompanied by a form as prescribed by the department. A request to terminate withholding may be submitted at any time by the payee and shall be in writing to the payor.
A.R.S. § 43-1135 — Arizona Code / Title 43 / Chapter 11 / Article 4 / Section 1135
43-1135 Net rents and royalties
Status: in_force

43-1135. Net rents and royalties

A. Net rents and royalties from real property located in this state are allocable to this state.

B. Net rents and royalties from tangible personal property are allocable to this state either:

1. If and to the extent that the property is utilized in this state.

2. In their entirety if the taxpayer's commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.

C. The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
A.R.S. § 43-1002 — Arizona Code / Title 43 / Chapter 10 / Article 1 / Section 1002
43-1002 Married person; application of definition
Status: in_force

43-1002. Married person; application of definition

The following rules shall apply to the definition of "married person" in section 43-1001:

1. An individual who is legally separated from his or her spouse under a decree of dissolution of marriage or of separate maintenance shall not be considered as married.

2. A taxpayer shall be considered as married at the close of the taxable year if his or her spouse died during the taxable year and the taxpayer would have been considered married at the date of the death of such spouse.
A.R.S. § 43-1083.02 — Arizona Code / Title 43 / Chapter 10 / Article 5 / Section 1083.02
43-1083.02 Renewable energy production tax credit; definitions
Status: in_force

43-1083.02. Renewable energy production tax credit; definitions

A. A credit is allowed against the taxes imposed by this title for the production of electricity using renewable energy resources.

B. The taxpayer is eligible for the credit:

1. If the taxpayer holds title to a qualified energy generator that first produces electricity from and after December 31, 2010 and before January 1, 2021.

2. For ten consecutive calendar years beginning with the calendar year in which the qualified energy generator begins producing electricity that is transmitted through a transmission facility to a grid connection with a public or private electric transmission or distribution utility system.  That same date applies with respect to that generator until the expiration of the ten-year period regardless of whether the generator is sold to another taxpayer or goes out of production before the expiration of the ten-year period.

C. The credit authorized by this section is based on the electricity that is generated by a qualified energy generator during a calendar year.  For a taxpayer that files on a fiscal year basis, the credit shall be claimed on the return for the taxable year in which the calendar year ends.

D. Subject to subsection G of this section, the amount of the credit is:

1. One cent per kilowatt-hour of the first two hundred thousand megawatt-hours of electricity produced by a qualified energy generator in the calendar year using a wind or biomass derived qualified energy resource.

2. The following amounts for electricity produced by a qualified energy generator using a solar light derived or solar heat derived qualified energy resource:

(a) Four cents per kilowatt-hour in the first calendar year in which the qualified energy generator produces electricity.

(b) Four cents per kilowatt-hour in the second calendar year in which the qualified energy generator produces electricity.

(c) Three and one-half cents per kilowatt-hour in the third calendar year in which the qualified energy generator produces electricity.

(d) Three and one-half cents per kilowatt-hour in the fourth calendar year in which the qualified energy generator produces electricity.

(e) Three cents per kilowatt-hour in the fifth calendar year in which the qualified energy generator produces electricity.

(f) Three cents per kilowatt-hour in the sixth calendar year in which the qualified energy generator produces electricity.

(g) Two cents per kilowatt-hour in the seventh calendar year in which the qualified energy generator produces electricity.

(h) Two cents per kilowatt-hour in the eighth calendar year in which the qualified energy generator produces electricity.

(i) One and one-half cents per kilowatt-hour in the ninth calendar year in which the qualified energy generator produces electricity.

(j) One cent per kilowatt-hour in the tenth calendar year in which the qualified energy generator produces electricity.

E. To qualify for the purposes of this section, an energy generator may be located within one mile of an existing qualified energy generator only if the owner of the energy generator or the owner's corporate affiliates are not the owner of or the corporate affiliate of the owner of the existing qualified energy generator.

F. To be eligible for the credit under this section, the taxpayer must apply to the department, on a form prescribed by the department, for certification of the credit.  The department shall only accept applications beginning January 2 through January 31 of the year following the calendar year for which the credit is being requested.  The application shall include:

1. The name, address and social security number or federal employer identification number of the applicant.

2. The location of the taxpayer's facility that produces electricity using renewable energy resources for which the credit is claimed.

3. The amount of the credit that is claimed.

4. The date the qualified energy generator began producing commercially marketable amounts of electricity.

5. Any additional information that the department requires.

G. The department shall review each application under subsection F of this section and certify to the taxpayer the amount of the credit that is authorized.  The amount of the credit for any calendar year shall not exceed two million dollars per facility that produces electricity using renewable energy resources.  Credits are allowed under this section and section 43-1164.03 on a first come, first served basis.  The department shall not authorize tax credits under this section and section 43-1164.03 that exceed in the aggregate a total of twenty million dollars for any calendar year.  The first time that a taxpayer submits a qualified application for a qualified energy generator under subsection F of this section, the  department shall add the taxpayer's name to a credit authorization list that is maintained in the order in which qualified applications are first received by the department on behalf of the qualified energy generator.  A taxpayer's position on the credit authorization list shall be determined in the first year the taxpayer submits an application under subsection F of this section for the qualified energy generator.  The taxpayer's position on the credit authorization list for a particular qualified energy generator shall remain unchanged for the ten years that are specified in subsection B, paragraph 2 of this section or until a year in which the taxpayer fails to submit a timely application under subsection F of this section or otherwise fails to comply with this section. If a taxpayer is removed from the credit authorization list for a qualified energy generator, the taxpayer may establish a new position on the credit authorization list in a subsequent year by filing a timely application for a qualified energy generator that qualifies for the credit.  If an application is received that, if authorized, would require the department to exceed the twenty million dollar limit, the department shall grant the applicant only the remaining credit amount that would not exceed the twenty million dollar limit.  After the department authorizes twenty million dollars in tax credits, the department shall deny any subsequent applications that are received for that calendar year.  The department shall not authorize any additional tax credits that exceed the twenty million dollar limit even if the amounts that have been certified to any taxpayer were not claimed or a taxpayer otherwise fails to meet the requirements to claim the additional credit.

H. Co-owners of a qualified energy generator, including partners in a partnership, members of a limited liability company and shareholders of an S corporation as defined in section 1361 of the internal revenue code, may each claim the pro rata share of the credit allowed under this section based on ownership interest.  The total of the credits allowed all such owners of the qualified energy generator may not exceed the amount that would have been allowed for a sole owner of the generator.

I. If the allowable tax credit for a taxpayer exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the amount of the claim not used to offset taxes under this title may be carried forward for not more than five consecutive taxable years as a credit against subsequent years' income tax liability.

J. The department shall adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this section.

K. For the purposes of this section:

1. "Biomass" means organic material that is available on a renewable or recurring basis, including:

(a) Forest-related materials, including mill residues, logging residues, forest thinnings, slash, brush, low-commercial value materials or undesirable species, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds and woody material harvested for the purpose of forest fire fuel reduction or forest health and watershed improvement.

(b) Agricultural-related materials, including orchard trees, vineyard, grain or crop residues, including straws and stover, aquatic plants and agricultural processed coproducts and waste products, including fats, oils, greases, whey and lactose.

(c) Animal waste, including manure and slaughterhouse and other processing waste.

(d) Solid woody waste materials, including landscape or right-of-way tree trimmings, rangeland maintenance residues, waste pallets, crates and manufacturing, construction and demolition wood wastes, excluding pressure-treated, chemically-treated or painted wood wastes and wood contaminated with plastic.

(e) Crops and trees planted for the purpose of being used to produce energy.

(f) Landfill gas, wastewater treatment gas and biosolids, including organic waste byproducts generated during the wastewater treatment process.

2. "Qualified energy generator" means a facility that has at least five megawatts generating capacity, that is located on land in this state owned or leased by the taxpayer, that produces electricity using a qualified energy resource and that sells that electricity to an unrelated entity, unless the electricity is sold to a public service corporation.

3. "Qualified energy resource" means a resource that generates electricity through the use of only the following energy sources:

(a) Solar light.

(b) Solar heat.

(c) Wind.

(d) Biomass.
A.R.S. § 43-953 — Arizona Code / Title 43 / Chapter 9 / Article 5 / Section 953
43-953 Period of limitation relating to transferees
Status: in_force

43-953. Period of limitation relating to transferees

The period of limitation for assessment of such liability of a transferee or fiduciary of the taxpayer shall be as follows:

1. In the case of the liability of an initial transferee of the property of the taxpayer, within one year after the expiration of the period of limitation for assessment against the taxpayer.

2. In the case of the liability of a transferee of a transferee of the property of the taxpayer, within one year after the expiration of the period of limitation for assessment against the preceding transferee but only if within three years after the expiration of the period of limitation for assessment against the taxpayer, except that if before the expiration of the period of limitation for the assessment of the liability of the transferee of a transferee a court proceeding for the collection of the tax or liability in respect thereof has been begun against the taxpayer or last preceding transferee, respectively, the period of limitation for assessment of the liability of the transferee of a transferee shall expire one year after the return of execution in the court proceeding.

3. In the case of the liability of a fiduciary, not later than one year after the liability arises or not later than the expiration of the period for collection of the tax in respect of which such liability arises, whichever is the later.

4. If before the expiration of the time prescribed in paragraph 1, 2 or 3 for the assessment of the liability, both the department and the transferee or fiduciary have consented in writing to its assessment after such time, the liability may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
A.R.S. § 43-1076.01 — Arizona Code / Title 43 / Chapter 10 / Article 5 / Section 1076.01
43-1076.01 Healthy forest production tax credit; definitions
Status: in_force

43-1076.01. Healthy forest production tax credit; definitions

A. For taxable years beginning from and after December 31, 2020, a credit is allowed against the taxes imposed by this title for processing qualifying forest products.

B. The taxpayer is eligible for the credit if all of the following apply:

1. The taxpayer has a current healthy forest enterprise incentive certification and memorandum of understanding with the Arizona commerce authority pursuant to section 41-1516.

2. The taxpayer processes qualifying forest products from a qualifying project from and after December 31, 2020 and before January 1, 2031.

3. The facility that processes qualifying forest products is located within this state.

C. The taxpayer is eligible for the credit for the calendar year in which the qualifying project processes qualifying forest products pursuant to subsection B of this section.

D. If the allowable credit under this section exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry forward the amount of the claim not used to offset the taxes under this title for not more than five consecutive taxable years' income tax liability.

E. The credit authorized by this section is based on the number of tons of qualifying forest products that a taxpayer processes during a calendar year. For a taxpayer who files on a fiscal year basis, the credit shall be claimed on the return for the taxable year in which the calendar year ends.

F. Subject to subsection H of this section, the amount of the credit is $10,000 for the first twenty thousand tons and $5,000 for every ten thousand tons thereafter of qualifying forest products the taxpayer processes in the calendar year.

G. To be eligible for the credit under this section, the taxpayer must apply to the department, on a form prescribed by the department, for certification of the credit. The department shall accept applications beginning January 2 through January 31 of the year following the calendar year for which the credit is being requested. The application shall include:

1. The taxpayer's name, address and social security number or federal employer identification number.

2. The location of the taxpayer's facility that processes qualifying forest products for which the credit is claimed.

3. The amount of the credit that is claimed.

4. The date the taxpayer began processing commercially marketable amounts of qualifying forest products.

5. Any additional information that the department requires.

H. The department shall review each application under subsection G of this section and certify to the taxpayer the amount of the credit authorized. The amount of the credit for any calendar year may not exceed $500,000 per taxpayer who processes qualifying forest products. Credits are allowed under this section and section 43-1162 on a first-come, first-served basis. The department may not authorize tax credits under this section and section 43-1162 that exceed in the aggregate a total of $2,000,000 for any calendar year.

I. The first time a taxpayer submits a qualified application under subsection G of this section, the department shall add the taxpayer's name to a credit authorization list in the order in which qualified applications are first received by the department on behalf of the taxpayer. A taxpayer's position on the credit authorization list shall be determined in the first year the taxpayer submits an application under subsection G of this section for processing qualifying forest products. The taxpayer's position on the list shall remain unchanged for the  remainder of the period specified in subsection B, paragraph 2 of this section or until a year in which the taxpayer fails to submit a timely application under subsection G of this section or otherwise fails to comply with this section. If a taxpayer is removed from the credit authorization list for processing qualifying forest products, the taxpayer may establish a new position on the credit authorization list in a subsequent year by filing a timely application for processing qualifying forest products that qualifies for the credit.

J. If an application is received that, if authorized, would require the department to exceed the $2,000,000 limit, the department shall grant the applicant only the remaining credit amount that would not exceed the $2,000,000 limit. After the department authorizes $2,000,000 in tax credits, the department shall deny any subsequent applications received for that calendar year. The department may not authorize any additional tax credits that exceed the $2,000,000 limit even if the amounts that have been certified to any taxpayer were not claimed or a taxpayer otherwise fails to meet the requirements to claim the additional credit.

K. Co-owners of a facility that processes qualifying forest products, including partners in a partnership and shareholders of an S corporation as defined in section 1361 of the internal revenue code, may each claim the pro rata share of the credit allowed under this section based on ownership interest.  The total of the credits allowed all such owners who process qualifying forest products may not exceed the amount that would have been allowed for a sole owner.

L. The department shall adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this section.

M. For the purposes of this section:

1. "Processed" or "processing" means any change in the physical structure of qualifying forest products removed from a qualifying project into a marketable commercial product or component of a product that has commercial value to a consumer or purchaser and that is ready to be used with or without further altering its form.

2. "Qualifying forest products" means qualifying forest products as defined in section 41-1516 that are sourced within this state.

3. "Qualifying project" has the same meaning prescribed in section 41-1516.
A.R.S. § 43-312 — Arizona Code / Title 43 / Chapter 3 / Article 1 / Section 312
43-312 Information return of sales; nonresident real estate transactions; escrow agents; reports
Status: in_force

43-312. Information return of sales; nonresident real estate transactions; escrow agents; reports

A. A person licensed under section 6-813 to conduct escrow business for the purchase and sale of real property located in this state shall file an information return of sales of real property located in this state that are reported pursuant to federal reporting requirements under section 6045(e) of the internal revenue code. The person shall file the information return required by this subsection:

1. On or before the thirty-first day of March with respect to sales of real property located in this state that are closed on or before December 31 of the preceding calendar year.

2. Using the same form and format of the return filed with the internal revenue service under section 6045(e) of the internal revenue code.

B. On or before June 30, 2020, the department shall report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on the estimated amount of capital gains tax paid by nonresidents of this state on real estate transactions in this state from the most recent year before tax year 2019 based on available data from the internal revenue service. On or before June 30 of each year, the department shall estimate and report to the joint legislative budget committee and the governor's office of strategic planning and budgeting on the amount of revenue collected from the sale of real estate by nonresidents that is attributed to the information return prescribed by this section in the prior tax year.
A.R.S. § 43-1361 — Arizona Code / Title 43 / Chapter 13 / Article 5 / Section 1361
43-1361 Certificate of payment of taxes
Status: in_force

43-1361. Certificate of payment of taxes

If the value of the assets of an estate at the death of the decedent exceeds twenty thousand dollars and if any beneficiary is a nonresident, the final account of the fiduciary shall not be allowed by the probate court unless the fiduciary obtains from the department and files with the court a certificate to the effect that all taxes imposed by this title upon the estate or decedent which have become payable have been paid, and that all taxes which may become due are secured by bond, deposit or otherwise.
A.R.S. § 43-1311 — Arizona Code / Title 43 / Chapter 13 / Article 2 / Section 1311
43-1311 Tax imposed on estates and trusts; rates; annual adjustment
Status: in_force

43-1311. Tax imposed on estates and trusts; rates; annual adjustment

A. Except for trusts that are taxable as partnerships or corporations under the internal revenue code, the income of estates or of any kind of property held in trust is subject only to the income tax imposed by subsection B of this section.

B. There shall be levied, collected and paid for each taxable year on the entire taxable income of every resident trust of this state and on the entire taxable income of nonresident trust that is derived from sources within this state taxes determined in the following manner:

1. For taxable years beginning from and after December 31, 2020 through December 31, 2021:

If taxable income is:                 The tax is:

$0 — $27,272                       2.59% of taxable income

$27,273 — $54,544                        $686, plus 3.34% of the amount

over $27,272

$54,545 — $163,632                 $1,571, plus 4.17% of the

amount over $54,544

$163,633 and over                   $5,991, plus 4.50% of the amount

over $163,632

2. Subject to subsection C of this section, for taxable years beginning from and after December 31, 2021 through December 31 of the year in which notice is provided to the department pursuant to section 43-244, subsection A or subsection B, paragraph 1:

If taxable income is:                 The tax is:

$0 — $27,272                       2.55% of taxable income

$27,273 and over                    $695, plus 2.98% of the amount

over $27,272

3. Subject to subsection C of this section, for taxable years beginning from and after December 31 of the year in which notice is provided to the department pursuant to section 43-244, subsection A or subsection B, paragraph 1 through December 31 of the year in which notice is provided to the department pursuant to section 43-244, subsection B, paragraph 2:

If taxable income is:                 The tax is:

$0 — $27,272                       2.53% of taxable income

$27,273 and over                    $690, plus 2.75% of the amount

over $27,272

4. For taxable years beginning from and after December 31 of the year in which notice is provided to the department pursuant to section 43-244, subsection B, paragraph 2, the tax is 2.5% of taxable income.

C. For each taxable year beginning from and after December 31, 2021, the department shall adjust the income dollar amount for each rate bracket prescribed by subsection B, paragraphs 2 and 3 of this section, as applicable, according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar.  The income dollar amounts for each rate bracket may not be revised below the amounts prescribed in the prior taxable year.
A.R.S. § 43-1073 — Arizona Code / Title 43 / Chapter 10 / Article 5 / Section 1073
43-1073 Family income tax credit
Status: in_force

43-1073. Family income tax credit

A. Subject to the conditions prescribed by this section, a credit is allowed against the taxes imposed by this chapter for a taxable year for taxpayers whose Arizona adjusted gross income, plus the amount subtracted for exemptions under section 43-1023 and the amount subtracted for Arizona small business gross income under section 43-1022, paragraph 28, is:

1. $20,000 or less in the case of a married couple filing a joint return with not more than one dependent or a single person who is a head of a household with not more than one dependent.

2. $23,600 or less in the case of a married couple filing a joint return with two dependents.

3. $27,300 or less in the case of a married couple filing a joint return with three dependents.

4. $31,000 or less in the case of a married couple filing a joint return with four or more dependents.

5. $20,135 or less in the case of a single person who is a head of a household with two dependents.

6. $23,800 or less in the case of a single person who is a head of a household with three dependents.

7. $25,200 or less in the case of a single person who is a head of a household with four dependents.

8. $26,575 or less in the case of a single person who is a head of a household with five or more dependents.

9. $10,000 or less in the case of a single person or a married person filing separately.

B. The amount of the credit is equal to $40 for each person who is a resident of this state and who is either the taxpayer, the taxpayer's spouse who does not file a return or a dependent but may not exceed:

1. $240 in the case of a married couple filing a joint return or a single person who is a head of a household.

2. $120 in the case of a single person or a married couple filing separately.

3. For any taxpayer, the amount of taxes due under this chapter for the taxable year.
A.R.S. § 43-1089 — Arizona Code / Title 43 / Chapter 10 / Article 5 / Section 1089
43-1089 Credit for contributions to school tuition organization
Status: in_force

43-1089. Credit for contributions to school tuition organization

A. A credit is allowed against the taxes imposed by this title for the amount of voluntary cash contributions by the taxpayer or on the taxpayer's behalf pursuant to section 43-401, subsection G during the taxable year to a school tuition organization that is certified pursuant to chapter 16 of this title at the time of donation.  Except as provided by subsection C of this section, the amount of the credit shall not exceed:

1. Five hundred dollars in any taxable year for a single individual or a head of household.

2. One thousand dollars in any taxable year for a married couple filing a joint return.

B. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed for a joint return.

C. For each taxable year beginning on or after January 1, the department shall adjust the dollar amounts prescribed by subsection A, paragraphs 1 and 2 of this section according to the average annual change in the metropolitan Phoenix consumer price index published by the United States bureau of labor statistics, except that the dollar amounts shall not be revised downward below the amounts allowed in the prior taxable year. The revised dollar amounts shall be raised to the nearest whole dollar.

D. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.

E. The credit allowed by this section is in lieu of any deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.

F. The tax credit is not allowed if the taxpayer designates the taxpayer's contribution to the school tuition organization for the direct benefit of any dependent of the taxpayer or if the taxpayer designates a student beneficiary as a condition of the taxpayer's contribution to the school tuition organization.  The tax credit is not allowed if the taxpayer, with the intent to benefit the taxpayer's dependent, agrees with one or more other taxpayers to designate each taxpayer's contribution to the school tuition organization for the direct benefit of the other taxpayer's dependent.

G. For the purposes of this section, a contribution, for which a credit is claimed, that is made on or before the fifteenth day of the fourth month following the close of the taxable year may be applied to either the current or preceding taxable year and is considered to have been made on the last day of that taxable year.
A.R.S. § 43-1139 — Arizona Code / Title 43 / Chapter 11 / Article 4 / Section 1139
43-1139 Allocation of business income
Status: in_force

43-1139. Allocation of business income

A. Except as provided in subsection B of this section, the taxpayer shall elect to apportion all business income to this state for taxable years beginning from and after:

1. December 31, 2006 through December 31, 2007 by either:

(a) Multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus two times the sales factor, and the denominator of which is four.

(b) Multiplying the income by a fraction, the numerator of which is two times the property factor plus two times the payroll factor plus six times the sales factor, and the denominator of which is ten.

2. December 31, 2007 through December 31, 2008 by either:

(a) Multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus two times the sales factor, and the denominator of which is four.

(b) Multiplying the income by a fraction, the numerator of which is one and one-half times the property factor plus one and one-half times the payroll factor plus seven times the sales factor, and the denominator of which is ten.

3. December 31, 2008 through December 31, 2013 by either:

(a) Multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus two times the sales factor, and the denominator of which is four.

(b) Multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus eight times the sales factor, and the denominator of which is ten.

4. December 31, 2013 through December 31, 2014 by either:

(a) Multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus two times the sales factor, and the denominator of which is four.

(b) Multiplying the income by a fraction, the numerator of which is seven and one-half times the property factor plus seven and one-half times the payroll factor plus eighty-five times the sales factor, and the denominator of which is one hundred.

5. December 31, 2014 through December 31, 2015 by either:

(a) Multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus two times the sales factor, and the denominator of which is four.

(b) Multiplying the income by a fraction, the numerator of which is five times the property factor plus five times the payroll factor plus ninety times the sales factor, and the denominator of which is one hundred.

6. December 31, 2015 through December 31, 2016 by either:

(a) Multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus two times the sales factor, and the denominator of which is four.

(b) Multiplying the income by a fraction, the numerator of which is two and one-half times the property factor plus two and one-half times the payroll factor plus ninety-five times the sales factor, and the denominator of which is one hundred.

7. December 31, 2016 by either:

(a) Multiplying the income by a fraction, the numerator of which is the property factor plus the payroll factor plus two times the sales factor, and the denominator of which is four.

(b) Multiplying the income by the sales factor.

B. All business income of a taxpayer engaged in air commerce shall be apportioned to this state by multiplying the income by a fraction, the numerator of which is the revenue aircraft miles flown within this state for flights beginning or ending in this state and the denominator of which is the total revenue aircraft miles flown by the taxpayer's aircraft everywhere.  This subsection applies to each taxpayer, including a combined group filing a combined return or an affiliated group electing to file a consolidated return under section 43-947, if fifty per cent or more of that taxpayer's gross income is derived from air commerce.  For the purposes of this subsection:

1. "Air commerce" means transporting persons or property for hire by aircraft in interstate, intrastate or international transportation.

2. "Revenue aircraft miles flown" has the same meaning prescribed by the United States department of transportation uniform system of accounts and reports for large certificated air carriers (14 Code of Federal Regulations part 241).
A.R.S. § 43-1026 — Arizona Code / Title 43 / Chapter 10 / Article 3 / Section 1026
43-1026 Additions and subtractions; Arizona small business income tax returns
Status: in_force

43-1026. Additions and subtractions; Arizona small business income tax returns

A taxpayer who elects to file an Arizona small business income tax return under section 43-302 for the taxable year may not make the additions or subtractions under section 43-1021 or 43-1022 to the taxpayer's individual income tax return for amounts that are correctly made as additions or subtractions on the taxpayer's Arizona small business income tax return under section 43-1721.
A.R.S. § 43-1083.03 — Arizona Code / Title 43 / Chapter 10 / Article 5 / Section 1083.03
43-1083.03 Credit for qualified facilities
Status: in_force

43-1083.03. Credit for qualified facilities

(Rpld. 1/1/32)

A. For taxable years beginning from and after December 31, 2012 through December 31, 2030, a credit is allowed against the taxes imposed by this title for qualifying investment and employment in expanding or locating a qualified facility in this state. To qualify for the credit, after June 30, 2012 the taxpayer must invest in a new qualified facility or expand an existing qualified facility in this state and produce new full-time employment positions where the job duties are associated with the location of the qualifying investment. The taxpayer must meet the employee compensation and employee health benefit requirements prescribed by section 41-1512.

B. The amount of the credit is computed as follows:

1. Ten percent of the lesser of:

(a) The total qualifying investment in the qualified facility.

(b) Either:

(i) If the total qualifying investment is less than $2,000,000,000, $200,000 for each net new full-time employment position that has duties associated with the qualified facility.

(ii) If the total qualifying investment is $2,000,000,000 or more, $300,000 for each net new full-time employment position that has duties associated with the qualified facility.

2. The amount of the credit shall not exceed the postapproval amount determined by the Arizona commerce authority under section 41-1512, subsection P.

3. Subject to subsections G and J of this section:

(a) The credit amount computed under paragraph 1 of this subsection is apportioned, and the taxpayer shall claim the credit in five equal annual installments in each of five consecutive taxable years.

(b) The taxpayer may claim all five annual installments of a credit that was preapproved before January 1, 2031 by the Arizona commerce authority notwithstanding any intervening repeal or other termination of the credit.

C. To claim the credit the taxpayer must:

1. Conduct a business that qualifies under section 41-1512.

2. Receive preapproval and postapproval from the Arizona commerce authority pursuant to section 41-1512.

3. Submit to the department a copy of a current and valid certification of qualification issued to the taxpayer by the Arizona commerce authority.

D. To be counted for the purposes of the credit, an employee must have been employed with job duties associated with the qualified facility for at least ninety days during the taxable year in a permanent full-time employment position of at least one thousand seven hundred fifty hours per year.  An employee who is hired during the last ninety days of the taxable year shall be considered a new employee during the next taxable year. To be counted for the purposes of the credit during the first taxable year of employment, the employee must not have been previously employed by the taxpayer within twelve months before the current date of hire.  The terms of employment must comply in all cases with the requirements of section 41-1512 and be certified by the Arizona commerce authority.

E. Co-owners of a business, including partners in a partnership, members of a limited liability company and shareholders of an S corporation, as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all owners of the business may not exceed the amount that would have been allowed for a sole owner of the business.

F. If the allowable tax credit for a taxable year exceeds the income taxes otherwise due on the claimant's income, or if there are no state income taxes due on the claimant's income, the amount of the claim not used as an offset against income taxes shall be paid to the taxpayer in the same manner as a refund under section 42-1118. Refunds made pursuant to this subsection are subject to setoff under section 42-1122. If the department determines that a refund is incorrect or invalid, the excess refund may be treated as a tax deficiency pursuant to section 42-1108.

G. Except as provided by subsection H of this section, if, within five taxable years after first receiving a credit pursuant to this section, the certification of qualification of a business is terminated or revoked under section 41-1512, other than for reasons beyond the control of the business as determined by the Arizona commerce authority, the taxpayer is disqualified from credits under this section in subsequent taxable years.  On a determination that the taxpayer has committed fraud or relocated outside of this state within five taxable years after first receiving a credit pursuant to this section, the credits allowed the taxpayer in all taxable years pursuant to this section are subject to recapture pursuant to this subsection. This subsection applies only in the case of the termination or revocation of a certification of qualification under section 41-1512. This subsection does not apply if, in any taxable year, a taxpayer otherwise does not qualify for or fails to claim the credit under this section. The recapture of credits is computed by increasing the amount of taxes imposed in the year following the year of termination or revocation by the full amount of all credits previously allowed under this section.

H. A taxpayer who claims a credit under section 43-1074 may not claim a credit under this section with respect to the same full-time employment positions.

I. The department of revenue shall adopt rules and prescribe forms and procedures as necessary for the purposes of this section. The department of revenue and the Arizona commerce authority shall collaborate in adopting rules as necessary to avoid duplication and contradictory requirements while accomplishing the intent and purposes of this section.

J. Each taxable year after the postapproval of the credit under section 41-1512, subsection P, when the taxpayer files the taxpayer's income tax return, the taxpayer shall:

1. Notify the department, on a form prescribed by the department, of any full-time employment position for which a credit was claimed under this section and that was vacant for more than one hundred fifty days after the date the full-time employment position was originally filled to the end of that taxable year. The period that a full-time employment position was vacant may not include the period before the full-time employment position was filled for the first time.

2. Reduce the portion of the credit claimed for the taxable year pursuant to subsection B, paragraph 3 of this section by $4,000 for each full-time employment position reported pursuant to paragraph 1 of this subsection.
A.R.S. § 43-1164.04 — Arizona Code / Title 43 / Chapter 11 / Article 6 / Section 1164.04
43-1164.04 Credit for qualified facilities
Status: in_force

43-1164.04. Credit for qualified facilities

(Rpld. 1/1/32)

A. For taxable years beginning from and after December 31, 2012 through December 31, 2030, a credit is allowed against the taxes imposed by this title for qualifying investment and employment in expanding or locating a qualified facility in this state.  To qualify for the credit, after June 30, 2012 the taxpayer must invest in a new qualified facility or expand an existing qualified facility in this state and produce new full-time employment positions where the job duties are associated with the location of the qualifying investment.  The taxpayer must meet the employee compensation and employee health benefit requirements prescribed by section 41-1512.

B. The amount of the credit is computed as follows:

1. Ten percent of the lesser of:

(a) The total qualifying investment in the qualified facility.

(b) Either:

(i) If the total qualifying investment is less than $2,000,000,000, $200,000 for each net new full-time employment position that has job duties associated with the qualified facility.

(ii) If the total qualifying investment is $2,000,000,000 or more, $300,000 for each net new full-time employment position that has job duties associated with the qualified facility.

2. The amount of the credit shall not exceed the postapproval amount determined by the Arizona commerce authority under section 41-1512, subsection P.

3. Subject to subsections G and J of this section:

(a) The credit amount computed under paragraph 1 of this subsection is apportioned, and the taxpayer shall claim the credit in five equal annual installments in each of five consecutive taxable years.

(b) The taxpayer may claim all five annual installments of a credit that was preapproved before January 1, 2031 by the Arizona commerce authority notwithstanding any intervening repeal or other termination of the credit.

C. To claim the credit the taxpayer must:

1. Conduct a business that qualifies under section 41-1512.

2. Receive preapproval and postapproval from the Arizona commerce authority pursuant to section 41-1512.

3. Submit to the department a copy of a current and valid certification of qualification issued to the taxpayer by the Arizona commerce authority.

D. To be counted for the purposes of the credit, an employee must have been employed with job duties associated with the qualified facility for at least ninety days during the taxable year in a permanent full-time employment position of at least one thousand seven hundred fifty hours per year.  An employee who is hired during the last ninety days of the taxable year shall be considered a new employee during the next taxable year. To be counted for the purposes of the credit during the first taxable year of employment, the employee must not have been previously employed by the taxpayer within twelve months before the current date of hire. The terms of employment must comply in all cases with the requirements of section 41-1512 and be certified by the Arizona commerce authority.

E. Co-owners of a business, including corporate partners in a partnership and members of a limited liability company, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all owners of the business may not exceed the amount that would have been allowed for a sole owner of the business.

F. If the allowable tax credit for a taxable year exceeds the income taxes otherwise due on the claimant's income, or if there are no state income taxes due on the claimant's income, the amount of the claim not used as an offset against income taxes shall be paid to the taxpayer in the same manner as a refund under section 42-1118. Refunds made pursuant to this subsection are subject to setoff under section 42-1122. If the department determines that a refund is incorrect or invalid, the excess refund may be treated as a tax deficiency pursuant to section 42-1108.

G. Except as provided by subsection H of this section, if, within five taxable years after first receiving a credit pursuant to this section, the certification of qualification of a business is terminated or revoked under section 41-1512, other than for reasons beyond the control of the business as determined by the Arizona commerce authority, the taxpayer is disqualified from credits under this section in subsequent taxable years.  On a determination that the taxpayer has committed fraud or relocated outside of this state within five taxable years after first receiving a credit pursuant to this section, the credits allowed the taxpayer in all taxable years pursuant to this section are subject to recapture pursuant to this subsection. This subsection applies only in the case of the termination or revocation of a certification of qualification under section 41-1512. This subsection does not apply if, in any taxable year, a taxpayer otherwise does not qualify for or fails to claim the credit under this section. The recapture of credits is computed by increasing the amount of taxes imposed in the year following the year of termination or revocation by the full amount of all credits previously allowed under this section.

H. A taxpayer that claims a credit under section 43-1161 may not claim a credit under this section with respect to the same full-time employment positions.

I. The department of revenue shall adopt rules and prescribe forms and procedures as necessary for the purposes of this section. The department of revenue and the Arizona commerce authority shall collaborate in adopting rules as necessary to avoid duplication and contradictory requirements while accomplishing the intent and purposes of this section.

J. Each taxable year after the postapproval of the credit under section 41-1512, subsection P, when the taxpayer files the taxpayer's income tax return, the taxpayer shall:

1. Notify the department, on a form prescribed by the department, of any full-time employment position for which a credit was claimed under this section and that was vacant for more than one hundred fifty days after the date the full-time employment position was originally filled to the end of that taxable year.  The period that a full-time employment position was vacant may not include the period before the full-time employment position was filled for the first time.

2. Reduce the portion of the credit claimed for the taxable year pursuant to subsection B, paragraph 3 of this section by $4,000 for each full-time employment position reported pursuant to paragraph 1 of this subsection.
A.R.S. § 43-1072.02 — Arizona Code / Title 43 / Chapter 10 / Article 5 / Section 1072.02
43-1072.02 Credit for increased transaction privilege or excise tax paid for education
Status: in_force

43-1072.02. Credit for increased transaction privilege or excise tax paid for education

A. Subject to the conditions prescribed by this section, for taxable years beginning from and after December 31, 2020 and ending before January 1, 2042, a credit is allowed against the taxes imposed by this chapter for a taxable year for a taxpayer who is not claimed as a dependent by any other taxpayer and whose federal adjusted gross income is:

1. $25,000 or less for a married couple or a single person who is a head of a household.

2. $12,500 or less for a single person or a married person filing separately.

B.  The credit is considered to be in mitigation of increased tax rates pursuant to section 42-5010.01 and section 42-5155, subsection E.

C. The amount of the credit may not exceed $25 for each person who is a resident of this state and who is either the taxpayer, the taxpayer's spouse who does not file a return or a dependent and shall not exceed $100 for all persons in the taxpayer's household as defined in section 43-1072.

D. If the allowable amount of the credit exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against income taxes shall be paid in the same manner as a refund granted under section 42-1118. Refunds made pursuant to this subsection are subject to setoff under section 42-1122.

E. A person who is sentenced for at least sixty days of the taxable year to the custody of the federal bureau of prisons, the state department of corrections or a county jail is not eligible to claim a credit pursuant to this section.

F. The department shall make available suitable forms with instructions for claimants.  Claimants who certify on the prescribed form that they have no income tax liability for the taxable year and who do not meet the filing requirements of section 43-301 are not required to file an individual income tax return.  The claim shall be in a form prescribed by the department.

G. A tax return or form prescribed pursuant to subsection F of this section must have:

1. A social security number that is valid for employment for the claimant.

2. Either a valid social security number or an individual taxpayer identification number issued by the internal revenue service for the claimant's spouse and any qualifying children of the claimant.

H. A taxpayer that claims a credit under this section may not claim the credit under section 43-1072.01 for the same taxable year. The credits under this section and section 43-1072.01 shall be collectively referred to as the excise tax credit and claimed using the same credit form or line on the tax return.  For the purposes of the report required by section 43-224, the department shall report the credits under section 43-1072.01 and this section together as one credit.
A.R.S. § 43-616 — Arizona Code / Title 43 / Chapter 6 / Article 1 / Section 616
43-616 Contribution to neighbors helping neighbors fund
Status: in_force

43-616. Contribution to neighbors helping neighbors fund

A. The department shall provide a space on the individual income tax return form in which the taxpayer may designate an amount of the taxpayer's refund as a voluntary contribution to the neighbors helping neighbors fund established pursuant to section 46-741.

B. After subtracting any setoff for debts pursuant to section 42-1122, the department of revenue shall subtract the designated amount from the refund due the taxpayer and transfer it to the department of economic security for deposit in the fund.

C. The taxpayer may also donate any amount to the fund, in lieu of or in addition to the designated portion of the income tax refund, by an appropriate indication on the return and by including that amount with the return.
A.R.S. § 43-946 — Arizona Code / Title 43 / Chapter 9 / Article 4 / Section 946
43-946 Transactions between corporations and affiliated taxpayers
Status: in_force

43-946. Transactions between corporations and affiliated taxpayers

In the case of a corporation doing business within the meaning of this title, whether under agreement or otherwise, in such manner as either directly or indirectly to benefit any members or stockholders of the corporation or any person or persons directly or indirectly interested in such business by rendering services of any nature whatsoever or acquiring or disposing of its products or the goods or commodities in which it deals, at less than a fair price therefor, the department, in order to prevent evasion of taxes or clearly to reflect the income of such corporation, may require a report of such facts as it deems necessary and may determine the amount which shall be deemed to be the entire taxable income allocable to this state of the business of such corporation for the calendar or fiscal year and compute the tax upon such taxable income. In determining the entire taxable income the department shall have regard to the fair profits which, but for any agreement, arrangement or understanding, might be or could have been obtained from dealing in such products, goods or commodities.
A.R.S. § 43-1154 — Arizona Code / Title 43 / Chapter 11 / Article 5 / Section 1154
43-1154 Penalty for exercising powers after suspension
Status: in_force

43-1154. Penalty for exercising powers after suspension

Any person who attempts or purports to exercise any of the rights, privileges or powers of any corporation suspended pursuant to section 43-1152 except as permitted by this article, or who transacts any intrastate business in the state in behalf of any such foreign corporation, shall be guilty of a class 1 misdemeanor. The jurisdiction of such offense shall be held to be in any county in which such transaction of business occurred and the county attorney of the county shall prosecute such offense. In addition to the penal provisions in this section, any taxpayer which transacts business during the period of suspension or forfeiture shall be subject to tax under the provisions of this title.
A.R.S. § 43-101 — Arizona Code / Title 43 / Chapter 1 / Article 1 / Section 101
43-101 Title
Status: in_force

43-101. Title

This title shall be known and may be cited as the Arizona income tax act of 1978.
A.R.S. § 43-1503 — Arizona Code / Title 43 / Chapter 15 / Article 1 / Section 1503
43-1503 Operational requirements for school tuition organizations
Status: in_force

43-1503. Operational requirements for school tuition organizations

A. A certified school tuition organization must be established to receive contributions from taxpayers for the purposes of income tax credits under sections 43-1183 and 43-1184 and insurance premium tax credits under sections 20-224.06 and 20-224.07 and to pay educational scholarships or tuition grants to allow students to attend any qualified school of their parents' or custodians' choice.

B. To be eligible for certification and retain certification, the school tuition organization:

1. Must allocate at least ninety percent of its annual revenue from contributions made for the purposes of sections 20-224.06, 20-224.07, 43-1183 and 43-1184 for educational scholarships or tuition grants.

2. Shall not limit the availability of educational scholarships or tuition grants to only students of one school.

3. Must allow the department of revenue to verify that the educational scholarships and tuition grants that are issued are awarded to students who attend a qualified school.

4. Must not knowingly collude with any other school tuition organization to circumvent the limits of section 43-1504, subsection C.

5. Must not award educational scholarships or tuition grants to students who are simultaneously enrolled in a district school or charter school and a qualified school.

6. Shall include on the organization's website, if one exists, the percentage and total dollar amount of educational scholarships and tuition grants awarded during the previous fiscal year to:

(a) Students whose family income meets the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1785) for free or reduced-price lunches.

(b) Students whose family income exceeds the threshold prescribed by subdivision (a) of this paragraph but does not exceed one hundred eighty-five percent of the economic eligibility requirements established under the national school lunch and child nutrition acts (42 United States Code sections 1751 through 1785) for free or reduced-price lunches.
A.R.S. § 43-1143 — Arizona Code / Title 43 / Chapter 11 / Article 4 / Section 1143
43-1143 Payroll factor
Status: in_force

43-1143. Payroll factor

The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the tax period other than compensation paid by either:

1. A foreign corporation which is not itself subject to the tax imposed by this title, unless the corporation is subject to the tax as a member of an Arizona affiliated group, as defined in section 43-947.

2. An insurance company that is exempt from tax under section 43-1201.
A.R.S. § 43-323 — Arizona Code / Title 43 / Chapter 3 / Article 2 / Section 323
43-323 Place and form of filing returns
Status: in_force

43-323. Place and form of filing returns

A. All returns required by this title shall be in such a form as the department may from time to time prescribe and shall be filed with the department.

B. The department shall prescribe a short form return for individual taxpayers who:

1. Are eligible and elect to pay tax based on the optional tax tables pursuant to section 43-1012.

2. Elect to claim the optional standard deduction pursuant to section 43-1041, subsection A, but not the increased amount for charitable deductions under section 43-1041, subsection I.

3. Elect not to file for credits against income tax liability other than those contained in sections 43-1072, 43-1072.01, 43-1072.02, 43-1073 and 43-1073.01.

4. Are not required to add any income under section 43-1021 and do not elect any subtractions under section 43-1022, except for the exemptions allowed under section 43-1023.

C. The department may provide a simplified return form for individual taxpayers who:

1. Are eligible and elect to pay tax based on the optional tax tables pursuant to section 43-1012.

2. Are residents for the full taxable year.

3. File as single individuals or married couples filing joint returns under section 43-309.

4. Are not sixty-five years of age or older or blind at the end of the taxable year.

5. Claim no exemptions under section 43-1023 for the taxable year.

6. Elect to claim the optional standard deduction under section 43-1041, subsection A, but not the increased amount for charitable deductions under section 43-1041, subsection I.

7. Are not required to add any income under section 43-1021 and do not elect to claim any subtractions under section 43-1022 or file for any credits under chapter 10, article 5 of this title, except the credits provided by sections 43-1072.01, 43-1072.02 and 43-1073.

8. Do not elect to contribute a portion of any tax refund as provided by any provision of chapter 6, article 1 of this title. Notwithstanding any provision of chapter 6, article 1 of this title, a simplified return form under this subsection shall not include any space for the taxpayer to so contribute a portion of a refund.

D. The department shall prepare blank forms for the returns and furnish them on request.  Failure to receive or secure the form does not relieve any taxpayer from making any return required.

E. An individual income tax preparer who prepares more than ten original income tax returns that are timely filed during any taxable year that begins from and after December 31, 2017 shall file electronically all individual tax returns prepared by that tax preparer, for that taxable year and each subsequent taxable year.  An individual income tax preparer may not charge a separate fee to the taxpayer for filing a return using the department's electronic filing program.  This subsection does not apply if the taxpayer elects to have the return filed on paper or if the return cannot be filed electronically for reasons outside of the tax preparer's control.

F. Fiduciary returns, partnership returns, withholding returns and corporate returns shall be filed electronically for taxable years beginning from and after December 31, 2019, or when the department establishes an electronic filing program, whichever is later. Any person who is required to file electronically pursuant to this subsection may apply to the director, on a form prescribed by the department, for an annual waiver from the electronic filing requirement.  The director may grant the waiver, which may be renewed for one subsequent year, if any of the following applies:

1. The taxpayer has no computer.

2. The taxpayer has no internet access.

3. Any other circumstance considered to be worthy by the director exists.

G. A waiver is not required if the return cannot be electronically filed for reasons beyond the taxpayer's control, including situations in which the taxpayer was instructed by either the internal revenue service or the department of revenue to file by paper.
A.R.S. § 43-1181 — Arizona Code / Title 43 / Chapter 11 / Article 6 / Section 1181
43-1181 Credit for donation of school site
Status: in_force

43-1181. Credit for donation of school site

A. A credit is allowed against the taxes imposed by this title in the amount of thirty percent of the value of real property and improvements donated by the taxpayer to a school district or a charter school for use as a school or as a site for the construction of a school.

B. To qualify for the credit:

1. The real property and improvements must be located in this state.

2. The real property and improvements must be conveyed unencumbered and in fee simple, except that:

(a) The conveyance must include as a deed restriction and protective covenant running with title to the land the requirement that as long as the donee holds title to the property the property shall be used only as a school or as a site for the construction of a school, subject to subsection I or J of this section.

(b) In the case of a donation to a charter school, the donor shall record a lien on the property as provided by subsection J, paragraph 3 of this section.

3. The conveyance shall not violate section 15-341, subsection D or section 15-183, subsection U.

C. For the purposes of this section, the value of the donated property is the property's fair market value as determined in an appraisal as defined in section 32-3601 that is conducted by an independent party and that is paid for by the donee.

D. If the property is donated by co-owners, including corporate partners in a partnership, each donor may claim only the pro rata share of the allowable credit under this section based on the ownership interest.  The total of the credits allowed all co-owner donors may not exceed the allowable credit.

E. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.

F. The credit under this section is in lieu of any deduction pursuant to section 170 of the internal revenue code taken for state tax purposes.

G. On written request by the donee, the donor shall disclose in writing to the donee the amount of the credit allowed pursuant to this section with respect to the property received by the donee.

H. A school district or charter school may refuse the donation of any property for purposes of this section.

I. If the donee is a school district:

1. The district shall notify the school facilities board established by section 15-2001 and furnish the board with any information the board requests regarding the donation. A school district shall not accept a donation pursuant to this section unless the school facilities board has reviewed the proposed donation and has issued a written determination that the real property and improvements are suitable as a school site or as a school. The school facilities board shall issue a determination that the real property and improvements are not suitable as a school site or as a school if the expenses that would be necessary to make the property suitable as a school site or as a school exceed the value of the proposed donation.

2. The district may sell any donated property pursuant to section 15-342, but the proceeds from the sale shall be used only for capital projects. The school facilities board shall withhold an amount that corresponds to the amount of the proceeds from any monies that would otherwise be due the school district from the school facilities board pursuant to section 15-2041.

J. If the donee is a charter school:

1. The charter school shall:

(a) Immediately notify the sponsor of the charter school by certified mail and shall furnish the sponsor with any information requested by the sponsor regarding the donation during the ten-year period after the conveyance is recorded.

(b) Notify the sponsor by certified mail, and the sponsor shall notify the state treasurer, in the event of the charter school's financial failure or if the charter school:

(i) Fails to establish a charter school on the property within forty-eight months after the conveyance is recorded.

(ii) Fails to provide instruction to pupils on the property within forty-eight months after the conveyance is recorded.

(iii) Establishes a charter school on the property but subsequently ceases to operate the charter school on the property for twenty-four consecutive months or fails to provide instruction to pupils on the property for twenty-four consecutive months.

2. The charter school, or a successor in interest, shall pay to the state treasurer the amount of the credit allowed under this section, or if that amount is unknown, the amount of the allowable credit under this section, if any of the circumstances listed in paragraph 1, subdivision (b) of this subsection occurs. If the amount is not paid within one year after the treasurer receives notice under paragraph 1, subdivision (b) of this subsection, a penalty and interest shall be added, determined pursuant to title 42, chapter 1, article 3.

3. A tax credit under this section constitutes a lien on the property, which the donor must record along with the title to the property to qualify for the credit. The amount of the lien is the amount of the allowable credit under this section, adjusted according to the average change in the GDP price deflator, as defined in section 41-563, for each calendar year since the donation, but not exceeding twelve and one-half percent more than the allowable credit. The lien is subordinate to any liens securing the financing of the school construction. The lien is extinguished on the earliest of the following:

(a) Ten years after the lien is recorded. After that date, the charter school, or a successor in interest, may request the state treasurer to release the lien.

(b) On payment to the state treasurer by the donee charter school, or by a successor in interest, of the amount of the allowable credit under this section, either voluntarily or as required by paragraph 2 of this subsection. After the required amount is paid, the charter school or successor in interest may request the state treasurer to release the lien.

(c) On conveyance of fee simple title to the property to a school district.

(d) On enforcement and satisfaction of the lien pursuant to paragraph 4 of this subsection.

4. The state treasurer shall enforce the lien by foreclosure within one year after receiving notice of any of the circumstances described in paragraph 1, subdivision (b) of this subsection.

5. Subject to paragraphs 3 and 4 of this subsection, the charter school may sell any donated property.
A.R.S. § 43-614 — Arizona Code / Title 43 / Chapter 6 / Article 1 / Section 614
43-614 Contribution of portion of refund to special olympics
Status: in_force

43-614. Contribution of portion of refund to special olympics

A. The department shall provide a space on the individual income tax return form in which the taxpayer may designate an amount of the taxpayer's refund as a voluntary contribution to the special olympics tax refund fund established pursuant to section 41-173.

B. After subtracting any setoff for debts pursuant to section 42-1122 the department of revenue shall subtract the designated amount from the refund due the taxpayer. The department of revenue shall transfer the designated amount to the department of economic security for credit to the special olympics tax refund fund.

C. The taxpayer may also donate any amount to the special olympics tax refund fund, in lieu of or in addition to the designated portion of the income tax refund, by an appropriate indication on the return and by including that amount with the return.