The bill SB1057 amends Arizona tax statutes to align with the U.S. Internal Revenue Code (IRC) as of January 1, 2024, incorporating changes made by Congress in 2023. It updates the definition of the IRC to include all provisions effective as of that date, while specifically adopting retroactive effective dates for those provisions. The bill excludes any changes to the IRC enacted after January 1, 2024, and makes technical and conforming changes to ensure consistency in tax calculations.

Under the new provisions, the definition of the IRC will apply to taxable years beginning after December 31, 2023, and will also retroactively include provisions effective during 2023 for taxable years starting after December 31, 2022. This contrasts with the current law, which references the IRC as of January 1, 2023, and includes provisions effective during 2022. The bill aims to ensure that Arizona's tax calculations remain consistent with federal tax law, which is crucial since state income tax assessments are based on federal taxable income.

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