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AZ SB1638
Bill
Status
Introduced
2/3/2026
Primary Sponsor
Javan Mesnard
Click for details
AI Summary
- Updates Arizona's conformity to the Internal Revenue Code from January 1, 2025 to January 1, 2026, adopting federal tax law changes that became effective during 2025 with their retroactive effective dates
- Incorporates provisions of Public Law 119-21 that are retroactively effective for taxable years 2022-2025 into Arizona tax calculations
- Adds new subtractions from Arizona gross income for qualified individual deductions, qualified passenger vehicle loan interest, qualified tips, and qualified overtime compensation as allowed under federal code sections 151, 163, 224, and 225
- Changes the standard deduction calculation to align with the federal basic standard deduction amount for each filing status as of January 1, 2026, rather than using fixed Arizona-specific dollar amounts
- Modifies the charitable deduction increase to the standard deduction: for taxable years after December 31, 2025, allows a dollar-for-dollar increase (capped at $1,000 single/$2,000 joint) instead of the previous percentage-based calculation
Legislative Description
Conformity; internal revenue code; deductions.
Last Action
Senate Committee of the Whole action: Do Pass Amended
2/11/2026
Committee Referrals
Rules2/3/2026
Finance2/3/2026
Full Bill Text
No bill text available