AZ HB2805

Establishes a new Arizona work opportunity tax credit for taxable years beginning after December 31, 2025, allowing credits for hiring qualified members of targeted groups.

Credit amount is the lowest of: the federal work opportunity tax credit claimed on federal returns, Arizona income tax liability for the year, or $1,000 per qualified employee hired.

Department of Economic Security must certify eligibility; taxpayers must attach certification to tax returns to claim the credit, with a statewide annual cap of $10,000,000 and maximum 10,000 certifications per calendar year on a first-come, first-served basis.

Qualified wages used for this credit cannot be used as the basis for any other Arizona tax credit under this chapter.

Definitions reference the federal work opportunity tax credit under Internal Revenue Code section 51, including the definition of "targeted group" and "qualified wages."