AZ HB2392

Adds a new subtraction (paragraph 31) to Arizona income tax law allowing taxpayers to subtract child and dependent care expenses paid under IRC section 21 that exceed the federal credit received.

The subtraction applies to qualified individuals' care expenses not already excluded from Arizona gross income under federal tax code.

Subtraction amount equals the care expenses minus any federal child and dependent care credit the taxpayer claimed.

Effective date is December 31, 2024.