The proposed bill, HB 2685, seeks to amend current statutes by adding a new section, 43-1073.02, to the Arizona Revised Statutes, which would establish a state-level Earned Income Tax Credit (EITC) for individual income tax filers who qualify for the federal EITC. The bill specifies that eligible individuals can claim a refundable credit of $350 per filer, with only one filer per household allowed to claim the credit. Additionally, the bill mandates that suitable claim forms be made available with individual income tax returns, and it outlines that claims must be filed with the income tax return, except for certain claimants with no tax liability.

Furthermore, the bill includes provisions for the payment of excess credits as refunds if the credit amount exceeds the tax due after applying other credits. The new section is designed to provide economic benefits to low-income individuals and families and is set to apply retroactively to taxable years beginning after December 31, 2024. Overall, the bill aims to enhance support for low-income taxpayers in Arizona by introducing this state EITC.

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