Assigned to FIN FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1222
internal revenue code; conformity
Purpose
Conforms Arizona tax statutes to the U.S. Internal Revenue Code (U.S. IRC) as of
January 1, 2025, to reflect changes adopted by the U.S. Congress during 2024.
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 Arizona Department of Revenue (ADOR), there is no anticipated fiscal
impact to the state General Fund associated with S.B. 1222 since no enacted federal acts modified
the U.S. IRC in 2024.
Provisions
1. Updates the statutory definition of Internal Revenue Code to include all provisions in effect as
of January 1, 2025, with the specific adoption of all retroactive effective dates, excluding any
changes to the U.S. IRC enacted after January 1, 2025.
2. Makes technical and conforming changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
January 28, 2025
MG/ci