This bill proposes to amend current statutes regarding personal property exemptions in Arizona, specifically focusing on the treatment of federal and state Earned Income Tax Credits (EITCs) and Child Tax Credits. Under current law, only the refundable portion of these credits is exempt from debt collection actions, with the exemption amount limited to the lesser of the total combined amount of tax refunds or the total amount of credits claimed. The new bill language would expand this exemption to include all federal and state EITCs and Child Tax Credits, thereby providing broader protection against debt collection processes.

Additionally, the bill includes technical and conforming changes, such as updating the exemption amounts for certain personal property and repealing previous amendments that limited the exemptions. Specifically, it would remove the existing statute that only exempts the refundable portion of the tax credits and replace it with a provision that fully exempts all related credits from execution, attachment, or sale for debt collection. The bill aims to enhance the financial security of individuals receiving these tax credits by ensuring they are fully protected from creditors.