HB 2198 Summary

• Establishes a state income tax credit for employers who pay tuition expenses for their employees at private or public postsecondary educational institutions.

• Limits the credit to employers with five or fewer employees.

• Allows unused credits to be carried forward for up to five consecutive taxable years if the credit exceeds tax liability.

• Credit is applied in place of any federal Internal Revenue Code section 170 charitable deductions claimed for state tax purposes.

• Adds new sections 43-1089.04 (for individual income tax) and 43-1163 (for corporate income tax) to Arizona Revised Statutes, with reviews scheduled for years ending in 3 and 8.