AZ HB2685

Amends section 43-223 to require all new individual or corporate income tax credits enacted by the legislature to include a specific repeal date set for December 31 of the seventh full calendar year following enactment, though taxpayers may continue to apply carryforwards to subsequent years.

Adds expiration dates of January 1, 2020 to numerous existing income tax credits for individuals and corporations, including credits for property taxes, earned income, employment, pollution control, solar energy, and charitable contributions.

Extends the repeal date for renewable energy production tax credits (sections 43-1083.02 and 43-1164.03) from January 1, 2020 to January 1, 2031 to allow longer qualification periods for energy generators.

Modifies research activity credits (sections 43-1074.01 and 43-1168) to extend repeal dates to January 1, 2027 and adjusts credit percentages and calculations for qualified research expenses.

Requires implementation by two-thirds vote of both houses of the legislature with immediate effectiveness upon governor's signature or three-fourths vote override of veto.