This bill proposes significant updates to the 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, deductions, and allowances. The bill establishes a new definition for "tax expenditure" and mandates that the joint legislative tax expenditure review committee evaluate each transaction privilege and use tax expenditure according to specific standards. The committee is required to report its findings and recommendations annually by December 15, and it will adopt a ten-year review schedule for these expenditures.

Additionally, the bill modifies the review process for tax expenditures, including the establishment of a new review schedule that differs from the previous five-year cycle for income tax credits. It specifies that the next review for individual and corporate income tax credits will occur no later than the tenth full calendar year following the last review, while all other tax expenditures will follow the same ten-year timeline. The bill also updates the list of tax expenditures to be reviewed, ensuring that the committee's responsibilities are aligned with the new definitions and review processes established by the legislation.

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, 9-499.15, 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, 43-1074, 43-1161