If enacted, this bill would update the Arizona Revised Statutes to align the definition of the "Internal Revenue Code" with the U.S. Internal Revenue Code as of January 1, 2025. Specifically, it would replace the current reference to January 1, 2024, with the new date, and would include provisions that became effective during 2024 while adopting their retroactive effective dates. The bill also clarifies that any changes to the Internal Revenue Code enacted after January 1, 2025, would be excluded from this definition.

Additionally, the bill modifies the provisions related to the computation of income tax for taxable years beginning after December 31, 2024, ensuring that the updated definition of the Internal Revenue Code applies. It also makes technical and conforming changes to the existing statutes, while deleting outdated references to prior years and provisions that are no longer relevant. Overall, the bill aims to maintain tax conformity with federal law, which is essential for calculating both corporate and individual income tax liabilities in Arizona.

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