The proposed bill updates Arizona's tax statutes to align with the U.S. Internal Revenue Code (IRC) as of January 1, 2025. Specifically, it modifies the definition of "Internal Revenue Code" to reflect changes made by Congress in 2024, while excluding any amendments enacted after January 1, 2025. The bill also clarifies that for taxable years beginning after December 31, 2024, the IRC will include provisions effective during 2024, including those with retroactive effective dates.

Additionally, the bill makes technical and conforming changes to ensure consistency within the tax code. It removes outdated references to the IRC as it stood on January 1, 2024, and eliminates previous provisions that pertained to taxable years prior to 2024. Overall, the bill aims to maintain conformity between state and federal tax laws, which is essential for the accurate computation of Arizona's income tax liabilities.

Statutes affected:
Introduced Version: 42-1001, 43-105
Senate Engrossed Version: 42-1001, 43-105