AZ HB2459

Establishes a new individual income tax credit under section 43-1075 for taxable years beginning after December 31, 2018, for qualifying children, elderly persons age 65 and older, and persons with mental disabilities or emotional/personality disorders.

Provides a $250 credit per qualifying person, reduced by 5% for each $1,000 (or fraction thereof) that Arizona adjusted gross income exceeds a threshold amount based on federal poverty level and filing status.

Defines "qualifying child" as a dependent under age 17 who is a biological, step, foster, or adopted child; lived with taxpayer more than half the year; did not provide more than half their own support; and was a U.S. citizen or resident alien.

Requires that if multiple taxpayers claim the same qualifying child, the parent or highest-income taxpayer receives the credit; denies credit to all claimants if dispute exists and is unresolved.

Makes the credit non-refundable, unable to reduce tax liability below zero, and denies credit to taxpayers delinquent on court-ordered spousal maintenance or child support payments.