Bill Text: AZ HB2475 | 2014 | Fifty-first Legislature 2nd Regular | Engrossed
Bill Title: Tax credits; veterans
Spectrum: Slight Partisan Bill (Democrat 23-8)
Status: (Engrossed - Dead) 2014-01-29 - Referred to Senate RULES Committee [HB2475 Detail]
Download: Arizona-2014-HB2475-Engrossed.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-first Legislature Second Regular Session 2014
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HOUSE BILL 2475 |
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AN ACT
amending title 41, chapter 23, article 3, Arizona Revised Statutes, by adding section 41-2560; amending section 43-222, Arizona Revised Statutes; amending title 43, chapter 10, article 5, Arizona Revised Statutes, by adding section 43‑1075; amending title 43, chapter 11, article 6, Arizona Revised Statutes, by adding section 43-1171; providing for the delayed repeal of sections 43‑1075 and 43‑1171, Arizona Revised Statutes, as added by this act; relating to disabled veterans.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 41, chapter 23, article 3, Arizona Revised Statutes, is amended by adding section 41-2560, to read:
41-2560. State contracts; disabled veteran‑owned business; participation goal; registry; definitions
A. Notwithstanding any other law, the director of the department of administration shall establish a disabled veteran‑owned business participation goal of awarding, pursuant to existing procurement rules, to qualified, operated and controlled disabled veteran‑owned businesses state contracts involving the procurement of materials, services or construction or the disposal of materials. The participation goal is at least one and one‑half per cent during the first year following the effective date of this section and increases to three per cent or more for every year after the first year. The goal applies to the overall dollar amount spent each year by this state pursuant to this article.
B. The director of the department of veterans' services shall:
1. Establish a registry of disabled veteran‑owned businesses to verify the veteran status and eligibility of businesses seeking to be included in the registry.
2. Use any resources, including the United States department of veterans affairs vetbiz registry, or its successor registry, or the United States department of defense form dd-214, or its successor form, to determine business eligibility.
C. The director of the department of administration shall establish procedures for meeting the goal using a registry of disabled veteran‑owned businesses that is compiled by the director of the department of veterans' services. The director of the department of administration, by rule, may allow a procurement officer to reserve certain procurements for registered disabled veteran‑owned businesses.
D. In the performance of a contract for services, a disabled veteran‑owned business shall use at least fifty per cent of the proceeds of the contract to pay for the salaries of employees of the disabled veteran‑owned business. This subsection does not apply to construction contracts.
E. For the purposes of this section:
1. "Disabled veteran" means a person who is a veteran of the armed forces of the United States, who is separated from the armed forces under honorable conditions following more than six months of active duty and who meets the requirements of section 38‑492, subsection E.
2. "Disabled veteran‑owned business" means a business to which all of the following apply:
(a) The business is an individual proprietorship, partnership, corporation or joint venture that is at least fifty-one per cent owned by one or more disabled veterans or, for a business whose stock is publicly held, at least fifty-one per cent of the stock is owned by one or more disabled veterans.
(b) The management and daily operations of the business are controlled by one or more disabled veterans who own the business.
(c) The home office of the business is located in this state and is not a branch or subsidiary of a foreign corporation or firm or other foreign business.
Sec. 2. Section 43-222, Arizona Revised Statutes, is amended to read:
43-222. Income tax credit review schedule
The joint legislative income tax credit review committee shall review the following income tax credits:
1. For years ending in 0 and 5, sections 43‑1079.01, 43‑1087, 43‑1088, 43‑1090.01, 43‑1167.01, 43‑1175 and 43‑1182.
2. For years ending in 1 and 6, sections 43‑1074.02, 43‑1083, 43‑1083.02, 43‑1085.01, 43‑1164.02, 43-1164.03 and 43‑1183.
3. For years ending in 2 and 7, sections 43‑1073, 43‑1079, 43‑1080, 43‑1085, 43‑1086, 43‑1089, 43‑1089.01, 43‑1089.02, 43-1089.03, 43‑1090, 43‑1164, 43‑1167, 43‑1169, 43‑1176 and 43‑1181.
4. For years ending in 3 and 8, sections 43‑1074.01, 43‑1081, 43‑1168, 43‑1170 and 43‑1178.
5. For years ending in 4 and 9, sections 43-1075, 43‑1076, 43‑1076.01, 43‑1081.01, 43‑1083.01, 43‑1084, 43‑1162, 43‑1162.01, 43‑1164.01, 43‑1170.01, 43-1171 and 43-1184 and, beginning in 2019, sections 43-1083.03 and 43‑1164.04.
Sec. 3. Title 43, chapter 10, article 5, Arizona Revised Statutes, is amended by adding section 43-1075, to read:
43-1075. Credit for employing veterans
A. For taxable years beginning from and after december 31, 2013 through december 31, 2016, a credit of not more than one hundred fifty thousand dollars is allowed against the taxes imposed by this title for a taxpayer who hires an employee who is all of the following:
1. a veteran of the armed forces of the united states as defined in section 41-601.
2. Separated from the armed forces under honorable conditions.
3. Collecting unemployment benefits pursuant to title 23, chapter 4 at the time the employee is hired.
B. to qualify for a credit under this section, the employer must pay the employee compensation that at least equals the median annual wage in this state, as determined by the most recent annual arizona commerce authority occupational wage and employment estimates.
C. the amount of the credit equals the lowest of the following:
1. ten per cent of the salary earned and paid to the employee during the taxable year.
2. One thousand two hundred dollars for an employee.
3. Two thousand four hundred dollars for an employee who meets the requirements of Section 38-492, subsection e.
D. 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.
E. If the allowable tax credit exceeds the taxes otherwise due under this title on a 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.
F. A credit is not allowed for a taxpayer if the employee hired is a relative of the taxpayer or of a person who has an ownership interest in the taxpayer claiming the credit. for the purposes of this subsection, "relative" means the spouse, child, child's child, parent, grandparent, brother or sister of the whole or half blood or by adoption and the spouse of any of them, and the parent, brother, sister or child of a spouse.
G. A credit is not allowed for a taxpayer unless the employee is hired for a vacant position or a new position. A taxpayer may not supplant or replace an existing employee in order to claim the credit.
Sec. 4. Title 43, chapter 11, article 6, Arizona Revised Statutes, is amended by adding section 43-1171, to read:
43-1171. Credit for employing veterans
A. For taxable years beginning from and after december 31, 2013 through december 31, 2016, a credit of not more than one hundred fifty thousand dollars is allowed against the taxes imposed by this title for a taxpayer that hires an employee who is all of the following:
1. a veteran of the armed forces of the united states as defined in section 41-601.
2. Separated from the armed forces under honorable conditions.
3. Collecting unemployment benefits pursuant to title 23, chapter 4 at the time the employee is hired.
B. to qualify for a credit under this section, the employer must pay the employee compensation that at least equals the median annual wage in this state, as determined by the most recent annual arizona commerce authority occupational wage and employment estimates.
C. the amount of the credit equals the lowest of the following:
1. ten per cent of the salary earned and paid to the employee during the taxable year.
2. One thousand two hundred dollars for an employee.
3. Two thousand four hundred dollars for an employee who meets the requirements of Section 38-492, subsection e.
D. 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 a sole owner of the business.
E. If the allowable tax credit exceeds the taxes otherwise due under this title on a 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.
F. A credit is not allowed for a taxpayer if the employee hired is a relative of the taxpayer or of a person who has an ownership interest in the taxpayer claiming the credit. for the purposes of this subsection, "relative" means the spouse, child, child's child, parent, grandparent, brother or sister of the whole or half blood or by adoption and the spouse of any of them, and the parent, brother, sister or child of a spouse.
G. A credit is not allowed for a taxpayer unless the employee is hired for a vacant position or a new position. A taxpayer may not supplant or replace an existing employee in order to claim the credit.
Sec. 5. Purpose
Pursuant to section 43‑223, Arizona Revised Statutes, the legislature enacts sections 43‑1075 and 43‑1171, Arizona Revised Statutes, as added by this act, to assist in helping veterans in finding employment.
Sec. 6. Delayed repeal
Sections 43‑1075 and 43‑1171, Arizona Revised Statutes, as added by this act, are repealed from and after December 31, 2016. The repeal of these sections does not affect the ability to carry forward a credit that was earned before the repeal of these sections.
Sec. 7. Effective date
Section 41-2560, Arizona Revised Statutes, as added by this act, is effective from and after December 31, 2014.
