AZ HB2726

Adds section 43-243 to Arizona Revised Statutes to establish a moratorium mechanism on corporate income tax credits.

Director of Tax shall issue a moratorium if, by February 1 of any taxable year, both the state transaction privilege tax growth rate and total nonfarm employment growth rate are each less than one percent.

During a moratorium year, taxpayers cannot claim premium tax credits under Title 20, Chapter 2, Article 1 or corporate income tax credits under Chapter 11, Article 6.

Moratorium also prevents carryforwards of tax credits from prior taxable years from being claimed during the moratorium year.