HB2837 Summary

• Requires the Office of Economic Opportunity, in collaboration with the Department of Education, to compile an annual in-demand regional education list of career technical education programs aligned with high-wage job opportunities in each region by September 1 each year.

• Creates three new income tax credits for taxable years 2021-2023: $2 per hour worked (capped at $20,000 annually per taxpayer) for employers hiring students ages 16-17 in approved career technical programs, individuals with serious mental illness, or individuals recently released from prison.

• Limits combined annual tax credits across both individual and corporate versions of each employment credit to $5,000,000 per calendar year on a first-come, first-served basis.

• Restricts eligibility for the serious mental illness and recent prisoner credits to employers with 100 or fewer employees; employees must reside in Arizona at time of hire and not have been employed within the previous six months.

• Credits may be carried forward for up to five consecutive years if they exceed current tax liability; unused credits may not be doubled as wage expense deductions.