AZ SB1177

Requires all new transaction privilege and use tax credits enacted by the legislature to include a specific repeal date no later than December 31 of the tenth full calendar year following enactment.

Requires all new individual or corporate income tax credits enacted by the legislature to include a specific review year (no later than the tenth full calendar year after enactment) and a specific repeal date (no later than December 31 of the review year), along with a purpose clause.

Extends the Joint Legislative Income Tax Credit Sunset Review Committee through July 1, 2027 (previously set to end in 2022) to review income tax credits using new standards based on purpose, economic benefit, and administrative complexity.

Implements a phased repeal schedule for multiple existing income tax credits between 2018 and 2027, including solar energy, renewable energy, school tuition organization, and employment-related credits, while preserving carryforward rights.

Adds sunset requirements to two existing transaction privilege tax credits: telecommunications service revenue reduction (through December 31, 2026) and accounting and reporting expenses (through December 31, 2026).