Arizona 2023 2023 Regular Session

Arizona House Bill HB2383 Comm Sub / Analysis

Filed 03/08/2023

                    Assigned to FIN 	AS ENACTED 
 
 
 
 
ARIZONA STATE SENATE 
Fifty-Sixth Legislature, First Regular Session 
 
ENACTED 
 
FACT SHEET FOR S.B. 1171/H.B. 2383 
 
conformity; internal revenue code 
Purpose 
Conforms Arizona tax statutes to the U.S. Internal Revenue Code (U.S. IRC) as of 
January 1, 2023, to reflect changes adopted by the U.S. Congress during 2022. 
Background 
The Arizona Legislature periodically updates the statutory definition of the U.S. IRC to 
include any federal provisions that became effective in the preceding calendar year as a means of 
paralleling the computation of Arizona income tax and other statutory references throughout the 
Arizona Revised Statutes to the amended U.S. IRC. Tax conformity with the U.S. IRC is deemed 
necessary because the calculation of Arizona corporate income tax liability begins with federal 
taxable income. Similarly, federal adjusted gross income is the starting point for individual income 
tax assessment. 
According to the revised conformity report provided by the Arizona Department of 
Revenue, the fiscal impact to the state General Fund associated with S.B. 1171 is estimated to be 
$(3.47) million in FY 2023, $(10.24) million in FY 2024 and $(11.62) million in FY 2025. 
Provisions 
1. Updates the statutory definition of Internal Revenue Code to include all provisions in effect as 
of January 1, 2023, with the specific adoption of all retroactive effective dates, excluding any 
changes to the U.S. IRC enacted after January 1, 2023.  
2. Makes technical and conforming changes.  
3. Becomes effective on the general effective date.  
Senate Action  House Action 
FIN  1/30/23  DP  7-0-0 WM  1/18/23  DP  10-0-0-0 
3
rd
 Read  2/16/23   28-0-2 3
rd
 Read  2/20/23   56-0-4 
(S.B. 1171 was substituted for H.B. 2383 on 
3
rd
 Read) 
Signed by the Governor 3/3/23 
Chapter 2 
Prepared by Senate Research 
March 7, 2023 
MG/sr