HB 2267 Summary

• Creates an Arizona earned income tax credit equal to 5 percent of the federal earned income tax credit allowed to qualifying taxpayers under Internal Revenue Code Section 32.

• Credit must be claimed on Arizona income tax return using forms provided by the Department of Revenue; only one claimant per household per taxable year is eligible.

• Excess credit amounts that exceed tax liability are refunded to the taxpayer in the same manner as other income tax refunds under Arizona law.

• Applies retroactively to all taxable years beginning after December 31, 2022.

• Adds the new credit to the joint legislative income tax credit review schedule for years ending in 3 and 8, effective for legislative review purposes.