AZ SB1479

Creates a new income tax credit for costs incurred in filing patent and trademark applications with the United States Patent and Trademark Office, administered by the Arizona Commerce Authority starting in taxable years beginning after December 31, 2016.

Establishes per-taxpayer annual credit limits of $3,000 for patent applications and $300 for trademark applications, with aggregate state limits of $10 million annually for patents and $1 million annually for trademarks.

Credits are approved on a first-come, first-served basis with 30-day processing deadlines, and unused annual balance rolls over to the following year.

Allows taxpayers to carry forward unused credits against future tax liability for up to five consecutive years if credits exceed current year taxes owed.

Requires the Arizona Commerce Authority to issue annual public reports by March 31 documenting approved and denied credits, and to assess whether the credits effectively incentivize patent and trademark applications.