AZ SB1562

Increases the annual refund limit for income tax credits for increased research activities from $5,000,000 to $10,000,000.

Establishes a new "Arizona Reinvestment Fund Act" allowing taxpayers with unused research activity tax credits to convert 75 cents per dollar into reinvestment funds, capped at $10,000,000 per year per applicant.

Reinvestment funds may only be used for sustainability/water projects, capital expenditures with educational institutions, or workforce development projects with higher learning or career technical education districts.

Sets a $50,000,000 annual fiscal year cap on total tax credit reinvestments, distributed on a first-come, first-served basis.

Appropriates $50,075,000 in fiscal year 2023-2024 ($50,000,000 for reinvestment implementation and $75,000 for administration) and requires economic analyses in 2028 and 2031; the reinvestment program expires June 30, 2033.