AZ SB1397

Amends Arizona tax code to update the definition of "Internal Revenue Code" to reference the U.S. Internal Revenue Code of 1986 as amended and in effect on January 1, 2021 (previously January 1, 2020) for taxable years beginning after December 31, 2020.

Updates the definition for taxable years beginning December 31, 2019 through December 31, 2020 to include retroactively effective provisions from the Coronavirus Aid, Relief, and Economic Security Act (P.L. 116-136), the Paycheck Protection Program Flexibility Act of 2020 (P.L. 116-142), and the Consolidated Appropriations Act, 2021 (P.L. 117-___).

Extends retroactive application of federal COVID-19 relief and economic acts to multiple prior tax year periods (2018-2019, 2017-2018, 2016-2017, 2015-2016, 2014-2015, 2013-2014, 2012-2013, 2011-2012, and 2010-2011).

Conformity update allows Arizona to apply recent federal tax law changes retroactively to earlier tax years when those changes became effective federally.