This bill proposes to update Arizona's tax statutes to align with the U.S. Internal Revenue Code (IRC) as of January 1, 2025. The current definition of "Internal revenue code" will be amended to reflect this new date, replacing the previous reference to January 1, 2024. The bill will also clarify that for taxable years beginning after December 31, 2024, the IRC will include provisions effective during 2024, while excluding any changes enacted after January 1, 2025. Additionally, it will extend the definition of the IRC to include retroactive provisions effective during the taxable years from December 31, 2023, through December 31, 2024.

Furthermore, the bill will remove outdated language regarding the IRC's applicability for taxable years beginning after December 31, 2013, through December 31, 2014, which included specific federal acts that are no longer relevant. The overall intent is to ensure that Arizona's tax laws remain consistent with federal tax law changes, thereby facilitating the computation of state income tax 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