HB2383 is a bill that updates Arizona's tax statutes to conform with the U.S. Internal Revenue Code (IRC) as of January 1, 2023. This includes adopting all federal provisions that became effective during 2022, with their retroactive effective dates, but excludes any changes to the IRC enacted after January 1, 2023. The purpose of this conformity is to align the computation of Arizona income tax with the federal taxable income for corporations and federal adjusted gross income for individuals.

The bill amends sections 42-1001 and 43-105 of the Arizona Revised Statutes. It changes the reference date for the definition of the "Internal Revenue Code" from January 1, 2022, to January 1, 2023, and includes provisions effective during 2022. It also specifies that for taxable years beginning from and after December 31, 2022, the IRC in effect on January 1, 2023, will be used for computing income tax, including retroactive provisions but excluding changes after that date. Additionally, for taxable years beginning from and after December 31, 2021, through December 31, 2022, the bill includes provisions from specific federal acts that are retroactively effective. The bill removes outdated language referring to the IRC as it stood on January 1, 2012, and the acts that were retroactively effective during that time.

Statutes affected:
Introduced Version: 42-1001, 43-105
House Engrossed Version: 42-1001, 43-105