AZ HB2347

Creates an Arizona earned income tax credit equal to 50% of the federal earned income tax credit for taxpayers who qualify under Internal Revenue Code section 32, effective for taxable years beginning after December 31, 2021.

Allows the credit to be claimed on income tax returns, with the Department of Revenue providing suitable claim forms; taxpayers with no income tax liability who don't meet filing requirements are exempt from filing to claim the credit.

Limits the credit to one claimant per household per taxable year; excess credits after other tax credits and setoffs are applied are paid as refunds under existing refund procedures.

Amends section 42-1122 to reference the new earned income tax credit section in the liability setoff program for tax refunds.

Adds the new earned income tax credit to the joint legislative income tax credit review committee's review schedule for years ending in 1 and 6.