AZ SB1176

Adds Article 1.1 to Title 43, Chapter 11 of Arizona Revised Statutes to establish conditions for suspending corporate income tax credits and reductions.

Defines a "trigger event" as any fiscal year when at least one of three conditions is met: per-student K-12 state spending equals the national median, 94% of third graders read at grade level, or high school graduation rate reaches 93%.

Requires the superintendent of public instruction to determine annually whether a trigger event occurred and report findings to the governor, Department of Revenue director, and legislative leaders by December 1.

Until a trigger event occurs, suspends existing corporate income tax provisions and establishes a flat corporate tax rate of 5.5% of net income or $50, whichever is greater.

Suspends special apportionment methods for multistate corporations, requiring them to use a standardized formula combining property, payroll, and sales factors until trigger event conditions are met.