SB 1264
Initials VP Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
Senate: FIN DP 9-0-1-0 | 3rd Read 27-1-2-0
House: WM DP 8-0-0-2
SB 1264: internal revenue code; conformity
Sponsor: Senator Livingston, LD 22
Caucus & COW
Overview
Conforms Arizona tax statutes to the Internal Revenue Code (IRC) as amended and in effect as
of January 1, 2022, to reflect changes adopted by the U.S. Congress, including those provisions
of the PPP (Paycheck Protection Program) Extension Act of 2021 (P.L. 117-6) and the
Infrastructure Investment and Jobs Act (P.L. 117-58) that became effective during 2021.
History
Current law conforms Arizona's income tax calculation to the IRC of 1986, as amended, in effect
on March 11, 2021, along with all federal retroactive dates, but excluding any change to the IRC
enacted after March 11, 2021. (A.R.S. § 43-105)
Generally, each year changes are made to the IRC that affect the Arizona income tax calculation.
Tax conformity with the IRC is deemed necessary because the calculation of Arizona corporate
income tax begins with federal taxable income and the federal adjusted gross income is the
starting point for individual income tax.
Provisions
1. Conforms Arizona's income tax calculation for taxable years beginning January 1, 2021 to the
IRC of 1986, as amended, in effect on January 1, 2022, including those provisions that
became effective during 2021 with the specific adoption of all retroactive effective dates. (Sec.
2)
2. Makes technical and conforming changes. (Sec. 1, 2)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note