AZ HB2333

Amends Arizona Revised Statutes section 41-1507 to modify the income tax refund program for businesses with increased research activity.

Only taxpayers employing fewer than 150 full-time employees qualify for refunds of their research activity income tax credits.

Increases annual refund caps: $7.5 million in 2016, $10 million in 2017, $12.5 million in 2018, and $15 million in 2019 and thereafter (up from a previous $5 million annual limit).

Establishes a two-tier approval process where during the first six months of each calendar year, only 50% of the annual cap may be approved, with the remaining 50% plus any unused balance available during the second half of the year on a first-come, first-served basis.

Requires a processing fee equal to one percent of the taxpayer's tax credit being refunded and becomes effective December 31, 2015.