HB 2688
Initials VP Page 1 Caucus & COW
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
House: WM DP 8-0-0-1
HB 2688: internal revenue code; conformity.
Sponsor: Representative Olson, LD 10
Caucus & COW
Overview
Conforms the Arizona tax statutes to the U.S. Internal Revenue Code (IRC) of 1986, as
amended, and in effect as of January 1, 2025, including those provisions that became effective
during 2024 with the specific adoption of all the retroactive dates, but excluding any changes
to the IRC enacted after January 1, 2025.
History
Current law conforms Arizona's income tax calculation to the IRC of 1986, as amended, in
effect on January 1, 2024, including those provisions that became effective during 2023 with
the specific adoption of all retroactive effective dates, but excluding any changes to the code
enacted after January 1, 2024. (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. Updates the definition of Internal Revenue Code. (Sec. 1)
2. Conforms the Arizona tax statutes to the U.S. Internal Revenue Code (IRC) of 1986, as
amended, and in effect as of January 1, 2025, including those provisions that became
effective during 2024 with the specific adoption of all the retroactive dates, but excluding
any changes to the IRC enacted after January , 2025. (Sec. 2)
3. Makes conforming changes. (Sec. 2)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note