AZ HB2147

Establishes a tax credit for taxpayers who hire veterans of the U.S. armed forces who are separated under honorable conditions and collecting unemployment benefits, applicable for taxable years beginning after December 31, 2013 through December 31, 2016.

Credit amount equals the lowest of: 10% of employee salary paid during the taxable year, $2,000 per employee, or $4,000 for employees meeting certain requirements under section 38-492.

Requires employers to pay hired veterans compensation at least equal to the median annual wage in Arizona as determined by the Arizona Commerce Authority's occupational wage and employment estimates.

Credit applies only to the first year or partial year of employment and is not refundable, but may be carried forward for up to five consecutive taxable years if it exceeds tax liability.

Sections 43-1075 (income tax credit) and 43-1171 (corporate tax credit) are repealed effective December 31, 2016, though credits earned before repeal may continue to be carried forward.