SB 1222 Summary

• Establishes a new tax credit for medical expenses incurred for substance abuse rehabilitation under Arizona Revised Statutes section 43-1080.

• Credit amount equals medical expenses for substance abuse rehabilitation that exceed the limit under Internal Revenue Code section 213, capped at $2,000 for single filers/heads of household and $4,000 for married couples filing jointly.

• Taxpayers may carry forward unused credits for up to five taxable years if the credit exceeds tax liability in the current year.

• Taxpayers cannot claim both this credit and the medical expense deduction under section 43-1042 for the same expenses.

• Adds section 43-1080 to the state income tax credit review schedule for years ending in 3 and 8.