AZ SB1142

Establishes a tax credit for taxpayers employing individuals with serious mental illness, worth $2 per hour worked, capped at $20,000 per taxpayer annually for tax years beginning after December 31, 2021.

Applies to both individual taxpayers (section 43-1075) and corporations (section 43-1163) with identical credit amounts and eligibility requirements.

Requires eligible employees to reside in Arizona at time of hire, be seriously mentally ill as defined in section 36-550, and have been unemployed for the six months prior to hiring.

Limits combined annual credits under both sections to a statewide cap of $1,000,000 per calendar year, distributed on a first-come, first-served basis.

Excludes regional behavioral health authorities and service providers contracting with the Arizona health care cost containment system from claiming the credit.