AZ HB2204

Adds a new subtraction from Arizona gross income for the value of virtual currency and non-fungible tokens received through an airdrop, limited to the value at the time of receipt and excluding any appreciation.

Creates section 43-1028 defining virtual currency, non-fungible tokens, gas fees, and foreign currency for tax purposes.

Allows taxpayers to subtract gas fees paid on the purchase of virtual currency or non-fungible tokens from Arizona gross income if those fees were not already included in the asset's basis or deducted elsewhere.

Defines "airdrop" as the distribution of virtual currency to multiple taxpayers' distributed ledger addresses.

Effective from and after December 31, 2022.