AZ HB2680

Creates a state income tax credit for qualified employers who hire ex-felons during taxable years 2017-2019, with credit amounts of 5% or 10% of the first $6,000 in wages depending on hours worked.

Employers qualify for a 5% credit if hired ex-felons work at least 120 but fewer than 400 hours, and 10% credit if they work 400 or more hours during the taxable year.

Credits are distributed on a first-come, first-served basis by the Department of Revenue, capped at $2 million in aggregate per fiscal year, with unused credits allowed to carry forward for up to five consecutive years.

Requires employers to qualify for the federal Work Opportunity Tax Credit under Internal Revenue Code Section 51 to claim the state credit, and applies pro rata to co-owners based on ownership interest.

Sunsets and is repealed effective December 31, 2020.