Bill > HB2153

This bill updates Arizona's tax laws to conform to changes in the federal Internal Revenue Code, primarily by adjusting the definition of the "Internal Revenue Code" to include provisions enacted up to January 1, 2026, for tax years beginning after December 31, 2025, and for prior years, it aligns with specific federal tax laws. It also modifies several deductions and credits for individual income tax, including increasing the dependent tax credit to $125 per qualifying child, allowing a deduction for certain retirement account distributions for individuals aged 60 and over, and adjusting the standard deduction to align with federal amounts while also allowing an increased deduction for charitable contributions. Additionally, the bill introduces a new chapter to allow Arizona to participate in a federal tax credit program for individual contributions to scholarship granting organizations, which will provide scholarships for qualified elementary and secondary education expenses, with these provisions generally applying retroactively to taxable years beginning after December 31, 2024.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/83813