This bill proposes significant updates to current statutes regarding tax expenditures in Arizona. It replaces references to "income tax credits" with "tax expenditures" throughout the relevant sections, reflecting a broader scope of review that includes various forms of tax exemptions and benefits. The joint legislative tax expenditure review committee will be tasked with evaluating transaction privilege and use tax expenditures, in addition to existing responsibilities, and will report its findings annually by December 15. The definition of "tax expenditure" is expanded to encompass any provision that exempts individuals or entities from established taxes, including deductions and credits.

Additionally, the bill establishes a ten-year review schedule for tax expenditures, ensuring that the committee systematically evaluates these provisions over time. Specific review years for various tax expenditures are outlined, replacing the previous system based solely on income tax credits. The bill also clarifies that certain deductions are excluded from the definition of tax expenditures, thereby refining the focus of the committee's reviews. Overall, the proposed changes aim to enhance the oversight and evaluation of tax expenditures in Arizona, promoting transparency and accountability in tax policy.

Statutes affected:
Introduced Version: 42-2003, 42-5046, 43-221, 43-222, 43-223, 43-302, 4-101, 42-2002, 42-1101, 42-12006, 43-1083.03, 43-1164.04, 41-1512, 41-1517, 41-1519, 43-1082, 43-1165, 32-1164, 12-821.01, 36-2806, 5-401, 42-1124, 42-3401, 42-6002, 9-500.39, 11-269.17, 42-5029, 42-2001, 42-1122, 46-291, 42-5031, 44-7101, 44-7111, 42-1103.02, 42-1125.01, 43-419, 42-5001, 42-5032.02, 42-5076, 42-5061, 43-1079.01, 43-1088, 43-1089.04, 43-1167.01, 43-1175, 43-1072.02, 43-1074.02, 43-1075, 43-1076.01, 43-1077, 43-1078, 43-1083, 43-1083.02, 43-1162, 43-1164.03, 43-1183, 43-1073, 43-1085, 43-1086, 43-1089, 43-1089.01, 43-1089.02, 43-1089.03, 43-1164, 43-1181, 43-1074.01, 43-1168, 43-1170, 43-1178, 43-1073.01, 43-1081.01, 43-1084, 43-1164.05, 43-1184, 43-1163, 43-1074, 43-1161