HB2824 Summary

• Amends section 43-1014 to allow partnerships and S corporations to elect entity-level taxation at the corporate rate for taxable years beginning after December 31, 2021, with partners or shareholders having 60 days to opt out of the election.

• Increases the individual income tax subtraction for adoption expenses from current law to $40,000 for taxable years 2023-2025, covering unreimbursed medical, hospital, counseling, legal, and agency fees, with the subtraction repealing after December 31, 2029.

• Establishes a one-time Arizona Families Tax Rebate of $250 per dependent under age 17 and $100 per dependent age 17 and older (maximum three dependents) for taxpayers who filed full-year resident returns for taxable year 2021 with claimed dependent credits and at least $1 tax liability, with rebates issued between October 15 and November 15, 2023.

• Allows taxpayers who do not receive the rebate by November 15, 2024 to claim it through a claim application process with the Department of Revenue.

• Caps the total fees assessed to counties, cities, towns, councils of governments, and regional transportation authorities at $6,597,200 in fiscal year 2023-2024, with proportional allocation based on historical revenue distributions.