The proposed bill, if enacted, would amend section 43-1022 of the Arizona Revised Statutes to expand the current individual income tax subtraction for net long-term capital gains. Under current law, this subtraction applies only to gains derived from assets acquired after December 31, 2011. The bill would remove this limitation, allowing the 25 percent subtraction to apply to all net long-term capital gains included in federal adjusted gross income for taxable years beginning January 1, 2026, thereby broadening the scope of eligible assets.

Additionally, the bill would make technical and conforming changes to the existing statute, including updating the effective date for the application of the 25 percent subtraction from gains derived from assets acquired after December 31, 2014, to those beginning January 1, 2025. The changes aim to simplify the tax code and provide a more inclusive benefit for taxpayers regarding capital gains.

Statutes affected:
Introduced Version: 43-1022
Senate Engrossed Version: 43-1022