HB2355 Summary

• Amends Arizona's standard deduction provisions in A.R.S. § 43-1041 to adjust the charitable deduction enhancement for inflation beginning in taxable years after December 31, 2020.

• Requires the Department of Revenue to annually adjust the 25% charitable deduction enhancement percentage based on the average annual change in the Phoenix metropolitan consumer price index.

• The adjusted percentage is rounded to the nearest whole percent and cannot decrease from the prior year's amount or exceed 100%.

• The charitable deduction enhancement allows taxpayers claiming the standard deduction (rather than itemizing) to increase their deduction by 25% of charitable contributions they would have been able to claim under itemized deductions, subject to inflation adjustments.