Bill Text: AZ HB2198 | 2013 | Fifty-first Legislature 1st Regular | Introduced
Bill Title: Employee tuition expenses; tax credit
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2013-01-23 - Referred to House WM Committee [HB2198 Detail]
Download: Arizona-2013-HB2198-Introduced.html
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REFERENCE TITLE: employee tuition expenses; tax credit |
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State of Arizona House of Representatives Fifty-first Legislature First Regular Session 2013
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HB 2198 |
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Introduced by Representatives Miranda: Cardenas, Contreras, Gabaldón, Gonzales, Mendez, Otondo, Steele
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AN ACT
amending section 43-222, Arizona Revised Statutes; amending title 43, chapter 10, article 5, Arizona Revised Statutes, by adding section 43‑1089.04; amending title 43, chapter 11, article 6, Arizona Revised Statutes, by adding section 43‑1163; relating to income tax credits.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. 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, 43‑1089.04, 43-1163, 43‑1168, 43‑1170 and 43‑1178.
5. For years ending in 4 and 9, sections 43‑1076, 43‑1076.01, 43‑1081.01, 43‑1083.01, 43‑1084, 43‑1162, 43‑1162.01, 43‑1164.01, 43‑1170.01 and 43-1184 and, beginning in 2019, sections 43-1083.03 and 43‑1164.04.
Sec. 2. Title 43, chapter 10, article 5, Arizona Revised Statutes, is amended by adding section 43-1089.04, to read:
43-1089.04. Credit for payment of employee tuition expenses; definition
A. A credit is allowed against the taxes imposed by this title for the amount an employer pays for an employee's tuition costs at a private or public postsecondary educational institution.
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. 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.
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. For the purposes of this section, "employer" means a person who employs five or fewer employees.
Sec. 3. Title 43, chapter 11, article 6, Arizona Revised Statutes, is amended by adding section 43-1163, to read:
43-1163. Credit for payment of employee tuition expenses; definition
A. A credit is allowed against the taxes imposed by this title for the amount an employer pays for an employee's tuition costs at a private or public postsecondary educational institution.
B. Co‑owners of a business, including 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 these owners of the business may not exceed the amount that would have been allowed for a sole owner of the business.
C. 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.
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. For the purposes of this section, "employer" means a person who employs five or fewer employees.
Sec. 4. Purpose
Pursuant to section 43-223, Arizona Revised Statutes, the legislature enacts sections 43-1089.04 and 43-1163, Arizona Revised Statutes, as added by this act, to provide income tax relief for taxpayers who promote the skills and knowledge of employees in this state by assisting their employees with postsecondary educational costs.
