AZ HB2705

Creates income tax rate reductions for small business owners who hire new employees in qualified employment positions, with reductions of 0.25% to 1% depending on number of employees hired, applicable for three years.

Limits eligibility to businesses with less than $4 million in gross receipts, independently owned and operated, with a place of business in Arizona, and located in the state before July 2017.

Requires qualified employment positions to consist of at least 1,750 hours per year of full-time permanent employment, with employer paying at least 65% of health insurance premiums and compensation at least equal to the median wage by county.

Caps new job credits at no more than four new jobs per employer each year statewide and 1,000 new jobs for all small business employers in Arizona each year.

Requires business owners to certify and report employee information and wage data to the Department of Revenue and a designated authority by specified deadlines to claim the tax rate reductions.