reglab/statecodes huggingface dataset:
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1072.02 - Credit for increased transaction privilege or excise tax paid for education

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.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1073 - Family income tax credit

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.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1073.01 - Dependent tax credit

43-1073.01.
Dependent tax credit
A. A credit is allowed against the taxes imposed by this title for a taxable year for each dependent of a taxpayer as provided by this section.
B. For taxpayers whose federal adjusted gross income is less than $200, 000 for a taxpayer who is a single person,  a married person filing separately or a head of household or is less than $400, 000 for a married couple filing a joint return,  the amount of the credit is:
1. $100 for each dependent who is under seventeen years of age at the end of the taxable year.
2. $25 for each dependent who is at least seventeen years of age at the end of the taxable year.
C. For taxpayers whose federal adjusted gross income is $200, 000 or more for a taxpayer who is a single person,  a married person filing separately or a head of household or is $400, 000 or more for a married couple filing a joint return,  the amount of the credit is:
1. $100 minus five percent for each $1, 000,  or fraction thereof,  by which the taxpayer's federal adjusted gross income exceeds the applicable threshold provided in this subsection for each dependent who is under seventeen years of age at the end of the taxable year.
2. $25 minus five percent for each $1, 000,  or fraction thereof,  by which the taxpayer's federal adjusted gross income exceeds the applicable threshold provided in this subsection for each dependent who is at least seventeen years of age at the end of the taxable year.
D. In the case of a nonresident or part-year resident taxpayer,  the credit allowed under this section is allowed in the percentage that the taxpayer's Arizona gross income is of the federal adjusted gross income.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1074.02 - Credit for investment in qualified small businesses

43-1074.02.
Credit for investment in qualified small businesses
A. For taxable years beginning from and after December 31,  2006 through December 31,  2034,  a credit is allowed against the taxes imposed by this title for investment made after June 30,  2006 in qualified small businesses. The amount of the credit is the amount determined and authorized by the Arizona commerce authority as provided by section 41-1518.
B. To claim the credit under this section,  the taxpayer shall attach to its tax return a copy of the Arizona commerce authority certification provided pursuant to section 41-1518. A credit is not allowed under this section unless the taxpayer provides the certification.
C. The basis of any investment with respect to which the taxpayer has claimed a credit under this section shall be reduced by the amount of the credit claimed with respect to that investment.
D. If the allowable tax credit exceeds the taxes 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 the taxes under this title may be carried forward to the next three consecutive taxable years as a credit against subsequent years' income tax liability.
E. Individuals who are co-owners of a business,  including partners in a partnership and shareholders of an S corporation as defined in section 1361 of the internal revenue code,  may each claim only their individual pro rata shares of the credit allowed under this section based on their ownership interests. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.
F. If the department of revenue determines that there has been a misrepresentation on an application submitted to the Arizona commerce authority under section 41-1518,  the department of revenue shall deny the credit if the misrepresentation relates to whether the applicant was a qualified investor or made a qualified investment. If the misrepresentation relates to whether the investment was made to:
1. A qualified small business,  the department of revenue shall deny the credit only if the applicant knew or should have known at any time before the certification that the representation was false.
2. A bioscience enterprise or a business that maintains its principal place of business in a rural county in this state,  the department of revenue shall decrease the amount of the credit that would have been allowed only if the applicant knew or should have known at any time before the certification that the representation was false.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1075 - Affordable housing tax credit

43-1075.
Affordable housing tax credit
(Rpld. 1/1/26)
A. A taxpayer is allowed a credit against the taxes imposed by this title if the Arizona department of housing issues an eligibility statement for a qualified project pursuant to section 41-3954. The amount of the credit:
1. Is equal to at least fifty percent of the amount of the federal low-income housing credit for the qualified project.
2. On notice to the department of revenue,  may be allocated among the partners,  members or shareholders,  as they may agree among themselves regardless of the size of such participant's ownership interest. The total of the allocated credits among all such participants may not exceed the amount of the credit approved by the Arizona department of housing. This paragraph does not prohibit a partner,  member or shareholder from holding an investment exclusively in either the state credits or federal credits allocated to the qualified project.
B. To claim the credit under this section,  the taxpayer must submit the eligibility statement provided by the Arizona department of housing under section 41-3954 to the department of revenue with the taxpayer's income tax return. A credit under this section is not allowed until the taxpayer furnishes the required documentation.
C. If the amount of the credit for a taxable year exceeds the amount of 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.
D. If all or part of the federal low-income housing tax credit with respect to the qualified project is subject to recapture under section 42 of the internal revenue code during the first ten taxable years after the project is placed in service,  the credit under this section is also subject to recapture in a proportional amount from all taxpayers who claimed the credit. The recapture is calculated by increasing the amount of taxes imposed in the following year by the amount recaptured.
E. The department of revenue,  with the cooperation of the department of insurance and financial institutions and the Arizona department of housing,  shall adopt rules and publish and prescribe forms and procedures as necessary to administer this section.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1077 - Credit for entity-level income tax

43-1077.
Credit for entity-level income tax
A. For taxable years beginning from and after December 31,  2021,  a credit is allowed against the taxes imposed by this title for a taxpayer who is a partner in a partnership or a shareholder of an S corporation that elects to pay the tax under section 43-1014.
B. The amount of the credit is the portion of the tax paid by the partnership or S corporation under section 43-1014 that is attributable to the partner's or shareholder's share of income taxable in this state.
C. If the allowable 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 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.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1078 - Credit for Arizona small business excess credit amount

43-1078.
Credit for Arizona small business excess credit amount
A. A credit is allowed against the taxes imposed by this chapter in an amount that is equal to the excess amount determined pursuant to section 43-1742.
B. If any portion of the allowable credit exceeds the taxes due under this chapter or if there are no taxes due under this chapter,  the amount of the credit not used to offset the taxes under this chapter may be carried forward as a credit under section 43-1742 to the following taxable year as a credit that is first available to offset the tax due under chapter 17 of this title.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1079.01 - Credit for employing national guard members

43-1079.01.
Credit for employing national guard members
A. For taxable years beginning from and after December 31,  2005,  a credit is allowed against the taxes imposed by this title for a taxpayer whose employee is a member of the Arizona national guard if the employee is placed on active duty. The amount of the credit is one thousand dollars for each employee who is placed on active duty by the Arizona national guard.
B. To qualify for the credit:
1. The employee must be a member of the Arizona national guard who is employed by the taxpayer in a full-time equivalent position when the employee is placed on active duty.
2. Each member of the Arizona national guard who is employed must have served during the taxable year on active duty for training that exceeds the required annual training period,  including any activation for federal or state contingencies or emergencies.
C. If the allowable 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 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.
D. The credit under this section may be claimed only once by the taxpayer in any taxable year with respect to each employee who is placed on active duty by the Arizona national guard,  but may be claimed again for that employee in a subsequent taxable year if that employee remains on active duty or is placed again on active duty in a subsequent taxable year.
E. Co-owners of a business,  including partners in a partnership 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 such owners may not exceed the amount that would have been allowed a sole owner.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1081.01 - Credit for agricultural pollution control equipment

43-1081.01.
Credit for agricultural pollution control equipment
A. A credit is allowed against the taxes imposed by this title for expenses that a taxpayer,  involved in the commercial production of livestock,  livestock products or agricultural,  horticultural,  viticultural or floricultural crops or products,  incurred during the taxable year to purchase tangible personal property that is primarily used in the taxpayer's trade or business in this state to control or prevent pollution. The amount of the credit is equal to twenty-five percent of the cost of the real or personal property. The maximum credit that a taxpayer may claim under this section is $25, 000 in a taxable year.
B. Property that qualifies for the credit under this section includes the portion of a structure,  building,  installation,  excavation,  machine,  equipment or device and any attachment or addition to or reconstruction,  replacement or improvement of that property that is directly used,  constructed or installed in this state to prevent,  monitor,  control or reduce air,  water or land pollution.
C. Amounts that qualify for a credit under this section must be includible in the taxpayer's adjusted basis for the property. The adjusted basis of any property with respect to which the taxpayer has claimed a credit shall be reduced by the amount of credit claimed with respect to that asset. This credit does not affect the deductibility for depreciation or amortization of the remaining adjusted basis of the asset.
D. Co-owners of a business,  including individual partners in a partnership,  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 such owners may not exceed the amount that would have been allowed a sole owner.
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 amount of the claim not used to offset the taxes under this title may be carried forward to the next five consecutive taxable years as a credit against subsequent years' income tax liability.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1083 - Credit for solar energy devices

43-1083.
Credit for solar energy devices
A. A credit is allowed against the taxes imposed by this title for each resident who is not a dependent of another taxpayer for installing a solar energy device,  as defined in section 42-5001,  during the taxable year in the taxpayer's residence located in this state. The credit is equal to twenty-five percent of the cost of the device.
B. The maximum credit in a taxable year may not exceed one thousand dollars. The person who provides the solar energy device shall furnish the taxpayer with an accounting of the cost to the taxpayer. A taxpayer may claim the credit under this section only once in a tax year and may not cumulate over different tax years tax credits under this section exceeding,  in the aggregate,  one thousand dollars for the same residence.
C. 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 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.
D. 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.
E. The credit allowed under this section is in lieu of any allowance for state tax purposes for exhaustion,  wear and tear of the solar energy device under section 167 of the internal revenue code.
F. To qualify for the credit under this section the solar energy device and its installation shall meet the requirements of title 44,  chapter 11,  article 11.
G. A solar hot water heater plumbing stub out that was installed by the builder of a house or dwelling unit before title was conveyed to the taxpayer does not qualify for a credit under this section.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1084 - Credit for agricultural water conservation system

43-1084.
Credit for agricultural water conservation system
A. A credit is allowed against the taxes imposed by this title for expenses that the taxpayer incurred during the taxable year to purchase and install an agricultural water conservation system in this state. The amount of the credit is equal to seventy-five percent of the qualifying expenses.
B. To qualify for the credit under this section:
1. The agricultural water conservation system must be primarily designed to substantially conserve water on land that is used by the taxpayer or the taxpayer's tenant to:
(a) Produce crops,  fruits or other agricultural products.
(b) Raise,  harvest or grow trees.
(c) Sustain livestock.
2. The expense must be consistent with a conservation plan that the taxpayer has filed with the United States department of agriculture,  natural resources conservation service,  or a natural resource conservation district in this state established pursuant to title 37,  chapter 6.
C. Co-owners of the land on which the water conservation system is installed,  including partners in a partnership 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 such owners may not exceed the amount that would have been allowed a sole owner.
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 taxable years' income tax liability.
E. The credit allowed by this section is in lieu of any deduction for such expenses allowed by the internal revenue code and included under section 43-1042 in computing taxable income.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1085 - Credit for solar energy devices; commercial and industrial applications

43-1085.
Credit for solar energy devices;  commercial and industrial applications
A. For taxable years beginning from and after December 31,  2005 through December 31,  2018,  a credit is allowed against the taxes imposed by this title for a taxpayer who is either:
1. Installing one or more solar energy devices,  as defined in section 42-5001 and certified pursuant to section 41-1510.01,  during the taxable year for commercial,  industrial or any other nonresidential application in the taxpayer's facility located in this state.
2. The third party organization that financed,  installed or manufactured the solar energy device that qualifies for the credit under paragraph 1 of this subsection if the taxpayer or an entity exempt from taxation under chapter 12 of this title who otherwise would qualify for this credit transfers the credit on a form prescribed by the department to the third party organization.
B. The amount of the credit is equal to ten per cent of the installed cost of the device.
C. The person who provides or installs the device shall furnish the taxpayer with an accounting of the cost to the taxpayer.
D. The taxpayer may not cumulate total tax credits under this section exceeding twenty-five thousand dollars with respect to the same building in the same year or fifty thousand dollars in total credits in any year.
E. If the allowable 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 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.
F. Co-owners of a business,  including partners in a partnership 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 or financial investment in the system. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1086 - Credit for donation to the military family relief fund subaccounts

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.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1089 - Credit for contributions to school tuition organization

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.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1089.04 - Pro rata credit for business contributions by S corporation school tuition organizations; definition

43-1089.04.
Pro rata credit for business contributions by S corporation school tuition organizations;  definition
A. A credit is allowed against the taxes imposed by this title for the pro rata amount of contributions made by an S corporation pursuant to section 43-1183,  subsection F or section 43-1184,  subsection F,  or both. To qualify for the credit:
1. The aggregate contribution in the taxable year must be at least five thousand dollars.
2. All other requirements of section 43-1183 or 43-1184 and the applicable sections of chapter 15 of this title must be met.
B. Co-owners of the S corporation may each claim the pro rata share of the credit allowed under sections 43-1183 and 43-1184 based on the taxpayer's ownership interest. The total of the credits allowed all the owners of the corporation may not exceed the amount that would have been allowed a sole owner of the corporation.
C. 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.
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. The tax credit is not allowed if the S corporation or a shareholder designates the contribution to the school tuition organization for the direct benefit of any dependent of a shareholder of the corporation claiming a credit under this section or if the corporation or a shareholder designates a student beneficiary as a condition of the contribution to the school tuition organization. The tax credit is not allowed if the corporation or a shareholder,  with the intent to benefit a shareholder's dependent,  agrees with one or more other taxpayers to designate reciprocal contributions to school tuition organizations for the direct benefit of the other taxpayer's dependent.
F. For the purposes of this section,  " S corporation"  or " corporation"  means an S corporation as defined in section 1361 of the internal revenue code.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1091 - Gross income of a nonresident

43-1091.
Gross income of a nonresident
A. In the case of nonresidents,  Arizona gross income includes only that portion of federal adjusted gross income which represents income from sources within this state.
B. Income of a nonresident from the wages or salary received by the nonresident employee who is in this state on a temporary basis for the purpose of performing disaster recovery from a declared disaster during a disaster period as defined in section 42-1130 is not considered income from sources within this state.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1092 - Intangible income of a nonresident

43-1092.
Intangible income of a nonresident
A. Except as provided in subsection B of this section,  income of nonresidents from stocks,  bonds,  notes or other intangible personal property is not income from sources within this state unless the property has acquired a business situs within this state,  except that if a nonresident buys or sells such property in this state or places orders with brokers within this state to buy or sell such property so regularly,  systematically and continuously as to constitute doing business in this state,  the profit or gain derived from such activity is income from sources within this state irrespective of the situs of the property. However,  in no case shall transactions extending over a period of less than six months be deemed to constitute doing business in this state.
B. Any income received by nonresidents which is derived from a small business corporation making an election pursuant to section 43-1126 shall be considered taxable income of this state.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1093 - Nonresident beneficiary of estate or trust income

43-1093.
Nonresident beneficiary of estate or trust income
Income of estates and trusts distributed or distributable to nonresident beneficiaries is income from sources within this state only if distributed or distributable out of income of the estate or trust derived from sources within this state.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1094 - Adjusted gross income of a nonresident

43-1094.
Adjusted gross income of a nonresident
A. In computing Arizona adjusted gross income,  a nonresident individual should make such adjustments as are included in sections 43-1021 and 43-1022 which apply to income included in his Arizona gross income except as provided in subsection B of this section.
B. For a nonresident individual the exemption allowed by section 43-1022,  paragraph 1 shall be allowed in an amount equal to that percentage of the exemptions set forth in section 43-1023 which his Arizona gross income is of his federal adjusted gross income.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1095 - Apportionment of deductions

43-1095.
Apportionment of deductions
In computing Arizona taxable income a nonresident taxpayer,  the standard deduction allowed in section 43-1041 and the itemized deductions allowed in section 43-1042 shall be allowed in the percentage that the taxpayer's Arizona gross income is of the federal adjusted gross income.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1097 - Change of residency status

43-1097.
Change of residency status
A. During the tax year in which a taxpayer changes from a resident to a nonresident,  Arizona taxable income shall include all of the following:
1. All income and deductions realized or recognized,  or both,  depending on the taxpayer's method of accounting,  during the period the individual was a resident,  and any income accrued by a cash basis taxpayer prior to the time the taxpayer became a nonresident of this state.
2. All income and deductions earned in Arizona or derived from Arizona sources after the time the taxpayer became a nonresident of this state.
B. During the tax year in which a taxpayer changes from a nonresident to a resident,  Arizona taxable income shall include all of the following:
1. All income and deductions realized or recognized,  or both,  depending on the taxpayer's method of accounting,  during the period the individual was a resident,  except any income accrued by a cash basis taxpayer prior to the time the taxpayer became a resident of this state.
2. All income and deductions earned in Arizona or derived from Arizona sources prior to the time the taxpayer became a resident of this state.
C. Income received while a nonresident from the wages or salary received by an employee who is in this state on a temporary basis for the purpose of performing disaster recovery from a declared disaster during a disaster period as defined in section 42-1130 is not considered income derived from sources within this state.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1098 - Apportionment of exemptions

43-1098.
Apportionment of exemptions
A. Any resident taxpayer,  other than an active member of the armed forces of the United States or any other auxiliary branch,  who commences or terminates residency in this state during any one taxable year shall prorate the exemptions provided in section 43-1023 for blind persons and for persons sixty-five years of age or older on the basis of the proportion that the taxpayer's total Arizona gross income bears to federal adjusted gross income.
B. The percentage of the exemption allowed is computed by dividing the taxpayer's Arizona gross income by the federal adjusted gross income.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1101 - Definitions

43-1101.
Definitions
In this chapter,  unless the context otherwise requires:
1. " Arizona gross income"  of a corporation means its federal taxable income for the taxable year.
2. " Arizona taxable income"  of a corporation means its Arizona gross income adjusted by the modifications specified in article 3 of this chapter.
3. " Domestic corporation"  means a corporation created or organized in the United States or under the laws of the United States or of any state of the United States or the District of Columbia.
4. " Federal taxable income"  means the taxable income of a corporation computed pursuant to the internal revenue code.
5. " Foreign corporation"  means any of the following:
(a) A corporation which is not a domestic corporation.
(b) A domestic corporation with less than twenty per cent of its property,  payroll and sales in the United States for the three year period ending with the close of the taxable year of the corporation preceding the current taxable year,  or for such part of that period as the corporation has been in existence.
(c) A domestic corporation that has derived eighty per cent or more of its federal gross income for the three year period immediately preceding the close of the taxable year,  or for such part of that period as the corporation has been in existence,  from sources in the Commonwealth of Puerto Rico or any other possession of the United States except the Virgin Islands if sixty per cent,  for taxable years beginning in calendar year 1984,  or sixty-five per cent,  for taxable years beginning after calendar year 1984,  or more of the domestic corporation's federal gross income for that period,  or part of that period as the corporation has been in existence,  was derived from the active conduct of a trade or business in the Commonwealth of Puerto Rico or any other possession of the United States except the Virgin Islands.
6. " Net income"  means Arizona taxable income.
7. " Person"  and " taxpayer"  means a corporation.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1111 - Tax rates for corporations

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.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1123 - Net operating loss; definition

43-1123.
Net operating loss;  definition
A. For the purposes of this section,  " net operating loss"  means:
1. In the case of a taxpayer who has a net operating loss for the taxable year within the meaning of section 172(c) of the internal revenue code,  the amount of the net operating loss increased by the subtractions specified in section 43-1122,  except the subtraction allowed in section 43-1122,  paragraph 10,  and reduced by the additions specified in section 43-1121.
2. In the case of a taxpayer not described in paragraph 1 of this subsection,  any excess of the subtractions specified in section 43-1122,  except the subtraction allowed in section 43-1122,  paragraph 10,  over the sum of the Arizona gross income plus the additions specified in section 43-1121.
B. If for any taxable year the taxpayer has a net operating loss:
1. Such net operating loss shall be a net operating loss carryover for:
(a) Each of the five succeeding taxable years for net operating losses arising in taxable periods through December 31,  2011.
(b) Each of the twenty succeeding taxable years for net operating losses arising in taxable periods beginning from and after December 31,  2011.
2. The carryover in the case of each such succeeding taxable year,  other than the first succeeding taxable year,  shall be the excess,  if any,  of the amount of such net operating loss over the sum of the taxable income for each of the intervening years computed by determining the net operating loss subtraction for each intervening taxable year,  without regard to such net operating loss or to the net operating loss for any succeeding taxable year.
C. The amount of the net operating loss subtraction shall be the aggregate of the net operating loss carryovers to the taxable year.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1124 - Americans with disabilities act access expenditures

43-1124.
Americans with disabilities act access expenditures
A. For taxable years beginning from and after December 31,  2017,  in computing Arizona taxable income,  a subtraction is allowed under section 43-1122,  paragraph 21 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 that 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.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1125 - Domestic international sales corporation

43-1125.
Domestic international sales corporation
A domestic international sales corporation,  commonly referred to as " disc" ,  as defined in section 992 of the internal revenue code shall be taxed pursuant to the provisions of this chapter without regard to the provisions of sections 991 through 996 of the internal revenue code.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1126 - Small business corporation; election as to taxable status; return; termination

43-1126.
Small business corporation;  election as to taxable status;  return;  termination
A. A small business corporation which makes an election for a taxable year pursuant to subtitle A,  chapter 1,  subchapter S of the internal revenue code is not subject to the taxes imposed by this chapter for such year but only to the extent such corporation is not subject to federal income taxes.
B. An electing small business corporation shall file with the department an annual return,  in a form prescribed by the department,  on or before the fifteenth day of the third month following the close of the taxable year. The return shall show the name and address of each stockholder of the corporation and their respective pro rata share of income or loss. The allocation and apportionment of income of a small business corporation which has nonresident stockholders shall be made pursuant to article 4 of this chapter.
C. An election under this section is effective for the taxable year for which it is made and for all succeeding taxable years unless the corporation terminates its election pursuant to section 1372 of the internal revenue code.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1127 - Deferred exploration expenses

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.
2023 Arizona Revised Statutes › Title 43 - Taxation of Income › § 43-1129 - Amortization of expenses incurred in acquisition of pollution control devices; depreciation

43-1129.
Amortization of expenses incurred in acquisition of pollution control devices;  depreciation
A. Any taxpayer may elect to amortize the adjusted basis of any device,  machinery or equipment for the collection and control at the source of atmospheric and water pollutants and contaminants based upon a period of sixty months. In computing Arizona taxable income,  such amortization shall be allowed as a subtraction ratably over the period allowed under this subsection beginning with the month in which such device,  machinery or equipment is completed or acquired and is placed in service by the taxpayer. This election shall be indicated by the taxpayer in an appropriate statement in the taxpayer's income tax return for the taxable year of the acquisition or completion and placement in service of such devices,  machinery or equipment. An election to discontinue amortization with respect to the remainder of the amortization period is permitted and shall be indicated by an appropriate statement in the taxpayer's income tax return for the taxable year of discontinuance.
B. If the taxpayer does not elect to amortize pursuant to subsection A,  there shall be allowed a deduction for normal exhaustion,  wear and tear of property. The amount of such deduction shall be computed pursuant to the provisions of section 167 of the internal revenue code.
C. In determining the adjusted basis for the purposes of subsection A,  such device,  machinery or equipment upon certification by the department of environmental quality as a device,  machinery or equipment for the collection and control at the source of atmospheric and water pollutants and contaminants shall include only an amount that is properly attributable to the construction,  reconstruction,  remodeling,  installation or acquisition of such device,  machinery or equipment as certified by the department of environmental quality.