Bill > SB1108

This bill amends Arizona's income tax laws to provide tax credits to businesses that pay their employees a local minimum wage that is higher than the state minimum wage. The bill adds two new sections, 43-1079 and 43-1166, which allow a 10% tax credit on the difference between the actual hourly labor costs paid by the employer and the amount that would have been paid at the state minimum wage. The credits can be carried forward for up to 5 years if they exceed the business's tax liability. The bill also requires the state treasurer to withhold a portion of the urban revenue sharing distribution to cities and towns to reimburse the state for the tax credits claimed.