The proposed legislation will require the committee to systematically review both individual and corporate income tax credits every five to ten years, thereby ensuring that outdated or ineffective credits can be amended or repealed. This allows for a more adaptive tax framework that can respond to changing economic conditions. It aligns tax policy with the state's financial needs, aiming to optimize revenue while still providing necessary incentives for economic growth.
Summary
House Bill 2757 aims to amend various sections of the Arizona Revised Statutes related to tax exemptions and credits. The bill introduces a structured review process for tax exemptions established under state law, mandating a schedule for the Joint Legislative Income Tax Credit Exemption Review Committee to conduct regular assessments of these tax credits. This committee will determine the effectiveness and relevance of existing tax credits and exemptions, which are crucial for evaluating fiscal policies concerning taxation in Arizona.
Contention
While proponents argue that this systematic review process enhances accountability and transparency in tax policy, there may be contention regarding the potential impacts on businesses reliant on these tax benefits. Critics could argue this might create uncertainty for companies that base their financial planning on existing tax exemptions. Addressing concerns from both sides will be critical for the bill's success and acceptance.