This bill proposes to update the Arizona tax statutes by amending the definition of "Internal Revenue Code" to reflect the U.S. Internal Revenue Code as of January 1, 2025, replacing the previous reference to January 1, 2024. Specifically, it will include provisions that became effective during 2024 and adopt their retroactive effective dates, while excluding any changes enacted after January 1, 2025. The bill also clarifies that for taxable years beginning after December 31, 2024, the definition will apply, ensuring that Arizona's tax calculations align with federal standards.

Additionally, the bill makes technical and conforming changes to the existing statutes, including the removal of outdated references to prior years and provisions that are no longer applicable. This streamlining aims to maintain consistency in the computation of Arizona income tax, which is based on federal taxable income, thereby ensuring that the state's tax code remains in conformity with federal law.

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