Bill Text: AZ SB1222 | 2023 | Fifty-sixth Legislature 1st Regular | Introduced
Bill Title: Tax credit; substance abuse rehabilitation
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-01-30 - Senate read second time [SB1222 Detail]
Download: Arizona-2023-SB1222-Introduced.html
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REFERENCE TITLE: tax credit; substance abuse rehabilitation |
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State of Arizona Senate Fifty-sixth Legislature First Regular Session 2023
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SB 1222 |
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Introduced by Senator Shope
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An Act
amending sections 43-222 and 43-1042, Arizona Revised Statutes; amending title 43, chapter 10, article 5, Arizona Revised Statutes, by adding section 43-1080; 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 43-222, 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, 43-1088, 43-1089.04, 43-1167.01 and 43-1175.
2. For years ending in 1 and 6, sections 43-1072.02, 43-1074.02, 43-1075, 43-1076.01, 43-1077, 43-1078, 43-1083, 43-1083.02, 43-1162, 43-1164.03 and 43-1183.
3. For years ending in 2 and 7, sections 43-1073, 43-1082, 43-1085, 43-1086, 43-1089, 43-1089.01, 43-1089.02, 43-1089.03, 43-1164, 43-1165, and 43-1181.
4. For years ending in 3 and 8, sections 43-1074.01, 43-1080, 43-1168, 43-1170 and 43-1178.
5. For years ending in 4 and 9, sections 43-1073.01, 43-1081.01, 43-1083.03, 43-1084, 43-1164.04, 43-1164.05 and 43-1184.
Sec. 2. Section 43-1042, Arizona Revised Statutes, is amended to read:
43-1042. Itemized deductions
A. Except as provided by subsections B and C of this section, at the election of the taxpayer, and in lieu of the standard deduction allowed by section 43-1041, in computing taxable income the taxpayer may take the amount of itemized deductions allowable for the taxable year pursuant to subtitle A, chapter 1, subchapter B, parts VI and VII, but subject to the limitations prescribed by sections 67, 68 and 274 of the internal revenue code.
B. In lieu of the amount of the federal itemized deduction for expenses paid for medical care allowed under section 213 of the internal revenue code, the taxpayer may deduct the full amount of such expenses. A taxpayer may not claim the deduction provided by this subsection and the credit allowed under section 43-1080.
C. A taxpayer shall not claim both a deduction provided by this section and a credit allowed by this title with respect to the same charitable contributions. This subsection applies to any contribution for which a credit is allowed by this title even if the contribution is treated as a payment of state income tax.
D. The taxpayer may add any interest expense paid by the taxpayer for the taxable year that is equal to the amount of federal credit for interest on certain home mortgages allowed by section 25 of the internal revenue code.
Sec. 3. Title 43, chapter 10, article 5, Arizona Revised Statutes, is amended by adding section 43-1080, to read:
43-1080. Credit for substance abuse rehabilitation
A. A credit is allowed against the taxes imposed by this title for medical expenses that the taxpayer incurred for substance abuse rehabilitation.
B. The amount of the credit is the amount of medical expenses that the taxpayer incurred for substance abuse rehabilitation that would be allowed under section 213 of the internal revenue code but exceeded the amount allowed under section 213 of the internal revenue code, not to exceed:
1. $2,000 for a single individual or head of household.
2. $4,000 for a married couple filing a joint return.
C. A married couple 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.
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 taxable years' income tax liability.
E. The credit allowed by this section is in lieu of any deduction for expenses included under section 43-1042 in computing taxable income.
Sec. 4. Purpose
Pursuant to section 43-223, Arizona Revised Statutes, the legislature enacts section 43-1080, Arizona Revised Statutes, as added by this act, to provide relief for a taxpayer's out-of-pocket medical expenses related to substance abuse rehabilitation.
