The proposed bill HB 2685 would amend current statutes by adding a new section, 43-1073.02, to the Arizona Revised Statutes, which establishes a state-level Earned Income Tax Credit (EITC) for individual income tax filers who qualify for the federal EITC. The new law would allow a refundable credit of $350 per filer, with only one filer per household eligible to claim the credit. Additionally, the bill specifies that claim forms will be made available with individual income tax returns, and it outlines the conditions under which claims can be filed, including provisions for those with no income tax liability.

The bill also includes a retroactive application clause, making the EITC effective from January 1, 2025. It would delete certain references in the current statutes and update the list of sections applicable for tax years ending in specific years to include the new section. Overall, the bill aims to provide economic benefits to low-income individuals and families in Arizona by reducing their tax burden through the newly established credit.

Statutes affected:
Introduced Version: 43-222, 43-1073.02, 43-1079.01, 43-1088, 43-1089.04, 43-1167.01, 43-1175, 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, 43-1183, 43-1073, 43-1082, 43-1085, 43-1086, 43-1089, 43-1089.01, 43-1089.02, 43-1089.03, 43-1164, 43-1165, 43-1181, 43-1074.01, 43-1168, 43-1170, 43-1178, 43-1073.01, 43-1081.01, 43-1083.03, 43-1084, 43-1164.04, 43-1164.05, 43-1184