Arizona 2022 Regular Session

Arizona House Bill HB2219

Caption

Income tax review committee; report

Impact

The bill aims to bring greater transparency and accountability to the evaluation of tax credits, which have significant implications for state revenue and economic policy. By instituting a structured review process, HB2219 intends to determine whether tax credits should be maintained, amended, or repealed based on their effectiveness in promoting economic development, job creation, and retention. The measure is designed to have this review occur every five years for each tax credit, enabling legislators to make data-driven decisions regarding tax policies.

Summary

House Bill 2219 establishes a Joint Legislative Income Tax Credit Review Committee in Arizona to evaluate existing income tax credits. This committee will consist of ten members, five from the House Ways and Means Committee and five from the Senate Finance Committee, ensuring a mix of political party representation. The primary function of the committee will be to assess the original purpose of tax credits and to set standards for their evaluation, including their economic impact on the state and any complexities involved in their application and administration.

Conclusion

Overall, House Bill 2219 represents a significant step towards reforming how tax credits are managed and reviewed in Arizona. It aims to streamline processes and ensure that tax incentives serve their intended purposes effectively, fostering economic development while also addressing possible legislative overreach or inefficiencies related to outdated tax benefits.

Contention

While supporters of HB2219 argue that it will improve the effectiveness of tax incentives by fostering regular oversight and eliminating ineffective or unnecessarily complex credits, critics may raise concerns regarding the potential implications for industries that rely on these credits for operational funding. The process of reviewing and potentially repealing credits could disproportionately affect businesses and economic sectors that benefit from these incentives, leading to debates over the balance between fiscal responsibility and economic support.

Companion Bills

No companion bills found.

Previously Filed As

AZ HB2705

ESAs; qualified schools; requirements; reporting.

AZ SB1397

Paid leave; study committee; reports

AZ SB1481

Charter schools; meetings; reporting; audits

AZ SB1399

ESAs; qualified schools; requirements; reporting

AZ SB1265

Investments; rural areas; tax credits

AZ HB2809

STO; income tax credit; repeal

AZ SB1487

Qualified schools; audits; reporting requirements

AZ HB2848

Mixed-income housing study committee

AZ HB2879

Income tax credit; historic preservation

AZ HB2554

TPT; online lodging marketplace; reporting

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