If enacted, this bill would update the Arizona tax statutes to align with the U.S. Internal Revenue Code (IRC) of 1986, as amended, effective January 1, 2025. The current law, which conforms to the IRC as of January 1, 2024, would be amended to reflect this new date, thereby including provisions that became effective during 2024 and adopting their retroactive effective dates. The bill specifically excludes any changes to the IRC that are enacted after January 1, 2025.

Additionally, the bill would revise the definition of "Internal Revenue Code" to reflect these changes, ensuring that for taxable years beginning after December 31, 2024, the IRC is understood in the context of the updated date. It would also clarify that for taxable years from December 31, 2023, through December 31, 2024, the IRC includes provisions that are retroactively effective during that period. The bill would remove outdated references to previous years and provisions that are no longer applicable.

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