AZ SB1468

Extends the taxable year through which businesses can use the sales factor apportionment method (single sales factor) for corporate income tax through December 31, 2025, after which they must revert to the three-factor apportionment method (property, payroll, and sales factors).

Eliminates the multistate service provider election to treat service sales under a combination of income-producing activity and market sales methods after December 31, 2024, requiring all taxpayers to use market-based sales allocation starting January 1, 2025.

Establishes new market-based sourcing rules effective January 1, 2025 for non-tangible personal property sales, including real property leases, intangible property, investment assets, and services based on where the property is located or service is delivered.

Specifies that for aircraft and other transportation property, location is determined by actual usage in the state; aircraft are sourced based on the fraction of landings in Arizona compared to total landings.

Allows multistate service providers to make elections on apportionment methods under current law rules through December 31, 2024, with elections binding for five-year periods.