This bill proposes to amend the Arizona Revised Statutes by adding section 43-1080, which introduces a new tax credit for taxpayers who hire qualified members of targeted groups, effective for taxable years beginning after December 31, 2025. The credit amount is determined by the lesser of the federal work opportunity tax credit claimed, the taxpayer's Arizona income tax liability, or $1,000 for each qualified member hired. Taxpayers must attach a certification from the Department of Economic Security to their tax return to claim the credit, and the department is limited to certifying a total of $10 million in credits and no more than 10,000 certifications per calendar year.

The bill also includes definitions for key terms such as "federal work opportunity tax credit," "targeted group," "qualified member," and "qualified wages," aligning them with the definitions in the Internal Revenue Code. Additionally, it stipulates that qualified wages used for this credit cannot be used for any other credits under the chapter. The Department of Revenue, in cooperation with the Department of Economic Security, is tasked with adopting rules and forms necessary for the administration of this new section.

Statutes affected:
Introduced Version: 43-222, 43-1080, 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, 43-1082, 43-1085, 43-1086, 43-1089, 43-1089.01, 43-1089.02, 43-1089.03, 43-1164, 43-1165, 43-1181, 43-1074.01, 43-1168, 43-1170, 43-1178, 43-1073.01, 43-1081.01, 43-1083.03, 43-1084, 43-1164.04, 43-1164.05, 43-1184