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 introduces a new section that clarifies the definition of the Internal Revenue Code for taxable years beginning after December 31, 2024, ensuring consistency in tax calculations.

Additionally, the bill makes technical and conforming changes to the existing statutes, including the removal of outdated references to prior years and provisions that are no longer applicable. The overall aim is to maintain alignment between Arizona's tax laws and the federal tax code, thereby facilitating the computation of both corporate and individual income tax liabilities based on federal taxable income.

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