Arizona Senate Bill SB1400

Arizona 2022 Regular Session

• Introduced: 1/26/22

Caption

Tax credit review; committee; repeal

Impact

The proposed amendments to the tax credit review process have implications for state laws concerning fiscal oversight and accountability for tax incentives. The bill mandates that new tax credits include a defined review year and a repeal date, ensuring that all credits are subject to periodic examination. Supporters argue that this will promote transparency and result in a more effective allocation of tax revenues, aligning fiscal policies with measurable economic outcomes.

Summary

SB1400, introduced by Senator Bowie, seeks to amend sections 43-221 and 43-223 of the Arizona Revised Statutes to alter the process for reviewing tax credits. This bill establishes a Joint Legislative Income Tax Credit Review Committee tasked with evaluating existing tax credits. The committee will assess the original purpose, evaluate performance, and determine whether these tax credits should be amended, repealed, or retained. It aims to provide a systematic review to ensure tax credits contribute meaningfully to the state's economy.

Contention

Notable points of contention arise from concerns about the potential impact on existing tax credits and their beneficiaries. Some lawmakers may argue that rigorous evaluations could jeopardize credits that support significant sectors of the economy, such as corporate investments and job retention. Critics fear that the bill may stifle economic development by creating uncertainty for businesses reliant on these incentives, suggesting the need for a careful balance between oversight and economic growth.