The proposed bill, if enacted, would amend Arizona Revised Statutes section 43-1022 to expand the individual income tax subtraction for net long-term capital gains. Currently, the law allows a 25 percent subtraction only for net long-term capital 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 several technical and conforming changes to the existing statute, including updating the effective date for the 25 percent subtraction from assets acquired after December 31, 2014, to those beginning January 1, 2025. The deletions of specific time frames for previous tax years would streamline the statute, ensuring that the new provisions are clear and applicable to all relevant capital gains moving forward.

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