HB2697 Summary

• Amends Arizona Revised Statutes section 43-1022 to modify depreciation subtraction rules for individual income tax purposes.

• Establishes a phased depreciation schedule for taxable years beginning after December 31, 2015, reducing the bonus depreciation allowance from ten percent (2013-2015) to fifty-five percent (2015-2016) to the full amount allowed under federal law (2016 forward).

• Changes depreciation calculation methodology in section 43-1022(20)(d) and (e) to reference section 168(k) of the Internal Revenue Code rather than prior percentage-based calculations.

• Corrects statutory language by replacing "per cent" with "percent" throughout the depreciation provisions for consistency.

• Effective date: May 10, 2016, as approved by the Governor and filed with the Secretary of State.