Bill > HB2004

This bill creates a new family support tax credit for Arizona residents with qualifying children, effective for taxable years beginning after December 31, 2025. The credit varies based on filing status and household income relative to the federal poverty level, with amounts ranging from $2,000 to $4,000 per qualifying child depending on whether the taxpayer is filing as single or married. Taxpayers can receive an additional credit if the mother completes a parenting education course during pregnancy, which must be at least four hours long and cover topics like prenatal care and child development. The credit amount is reduced on a sliding scale for households with income between 100% and 145% of the federal poverty level, with no reduction for those at or below 100% of the poverty level. To claim the credit, taxpayers must maintain documentation verifying pregnancy, parenting course completion, household income, and legal residency. If the credit exceeds the taxpayer's tax liability, the excess will be refunded. The bill's stated purpose is to support families and encourage women to carry pregnancies to full-term. The legislation also makes corresponding technical amendments to existing tax code sections to incorporate this new tax credit into the state's income tax review and filing processes.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/83537