AZ SB1106

Updates Arizona's Internal Revenue Code conformity date from January 1, 2025 to January 1, 2026 for purposes of computing state income taxes.

Creates a new subtraction from Arizona gross income for taxpayers age 60 or older, allowing up to $6,000 ($12,000 for joint filers) for distributions from pensions or retirement accounts, with phase-outs beginning at $75,000 income ($150,000 for joint filers).

Adds new subtractions from Arizona gross income for qualified tips, qualified overtime compensation, child and dependent care expenses exceeding federal credits, and contributions up to $6,000 to Roth IRAs, for taxable years beginning after December 31, 2024.

Increases the adoption expense subtraction from $3,000 to $5,000 for single filers and $10,000 for joint filers, effective for taxable years beginning after December 31, 2025.

Replaces fixed standard deduction amounts ($12,200 single, $18,350 head of household, $24,400 joint) with conformity to the federal basic standard deduction amounts under Section 63 of the Internal Revenue Code.