Bill Text: AZ HB2358 | 2020 | Fifty-fourth Legislature 2nd Regular | Engrossed
Bill Title: Dependent tax credit; inflation adjustment
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2020-02-25 - Senate read second time [HB2358 Detail]
Download: Arizona-2020-HB2358-Engrossed.html
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House Engrossed |
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State of Arizona House of Representatives Fifty-fourth Legislature Second Regular Session 2020
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HOUSE BILL 2358 |
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AN ACT
amending section 43‑1073.01, Arizona Revised Statutes; relating to individual income tax credits.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 43-1073.01, Arizona Revised Statutes, is amended to read:
43-1073.01. Dependent tax credit
A. A credit is allowed against the taxes imposed by this title for a taxable year for each dependent of a taxpayer as provided by this section.
B. For taxpayers whose federal adjusted gross income is less than $200,000 for a taxpayer who is a single person, a married person filing separately or a head of household or is less than $400,000 for a married couple filing a joint return, the amount of the credit is:
1. $100 for each dependent who is under seventeen years of age at the end of the taxable year.
2. $25 for each dependent who is at least seventeen years of age at the end of the taxable year.
C. For taxpayers whose federal adjusted gross income is $200,000 or more for a taxpayer who is a single person, a married person filing separately or a head of household or is $400,000 or more for a married couple filing a joint return, the amount of the credit is:
1. $100 minus five percent for each $1,000, or fraction thereof, by which the taxpayer's federal adjusted gross income exceeds the applicable threshold provided in this subsection for each dependent who is under seventeen years of age at the end of the taxable year.
2. $25 minus five percent for each $1,000, or fraction thereof, by which the taxpayer's federal adjusted gross income exceeds the applicable threshold provided in this subsection for each dependent who is at least seventeen years of age at the end of the taxable year.
D. In the case of a nonresident or part‑year resident taxpayer, the credit allowed under this section is allowed in the percentage that the taxpayer's Arizona gross income is of the federal adjusted gross income.
E. For each taxable year beginning from and after December 31, 2020, the department shall adjust the $100 and $25 amounts prescribed by subsection B, paragraphs 1 and 2 of this section and subsection C, paragraphs 1 and 2 of this section according to the average annual change in the metropolitan Phoenix consumer price index published by the United States department of labor, bureau of labor statistics. The revised dollar amounts shall be raised to the nearest whole dollar and may not be revised below the amounts prescribed in the prior taxable year.
