Assigned to FIN FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1080
tax credit review committee; standard
Purpose
Adds, to the standards of evaluating tax credits, requirements for the Joint Legislative
Income Tax Credit Review Committee (JLITCRC) to include the estimated revenue impact of the
credit and whether there are adequate protections to ensure that the revenue impact of the credit
does not increase beyond the estimated revenue impact of the credit provided for review.
Background
The JLITCRC is responsible for determining the original purpose of existing tax credits
and establishing a standard for evaluating the success or failure of tax credits. The tax credit
evaluation standards may include: 1) the history, rationale and estimated revenue impact of the
credit; 2) whether the credit has provided a benefit to the state; and 3) the complexity in the
administration of the credit.
The Joint Legislative Budget Committee assists the JLITCRC in reviewing tax credits
according to the statutory credit review schedule. After completing the review process, the
JLITCRC must determine if each credit should be amended, repealed or retained. If recommended
to be retained or amended, the JLITCRC must recommend that the credit be returned to the tax
credit review schedule. The JLITCRC must report its findings and recommendations to the
President of the Senate, Speaker of the House of Representatives and Governor by December 15
each year (A.R.S § 43-221).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Requires, rather than allows, the tax credit evaluation standards to include the estimated
revenue impact of the credit.
2. Requires the tax credit evaluation standards to include whether adequate protections are in
place to ensure that the revenue impact of the credit in future years does not substantially
increase beyond the estimated revenue impact of the credit provided for review.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date.
Prepared by Senate Research
January 22, 2025
MG/AL/ci