Title 43 — Taxation of Income

If any rate of tax imposed by this title changes and if the taxable year includes the effective date of the change, unless that date is the first day of the taxable year, then: 1. Tentative taxes shall be computed by applying the rate for the period before the effective date of t…

If a separate return is made under section 443 of the internal revenue code on account of a change in the accounting period, and in all other cases in which a separate return is required or allowed by treasury regulations to be made for a fractional part of a year, the income sha…

In the case of a taxpayer not in existence during the whole of an annual accounting period ending on the last day of a month or if the taxpayer has no annual accounting period or does not keep books during the whole of a calendar year, the return shall be made for the fractional …

A. In any case of two or more persons, organizations, trades or businesses, whether or not organized in the United States and whether or not affiliated, owned or controlled directly or indirectly by the same interests, the department may distribute, apportion or allocate gross in…

A. In any case of two or more corporations owned or controlled directly or indirectly by the same interests, the department may distribute, apportion or allocate gross income, deductions, credits or allowances between or among such taxpayers, if it determines that such distributi…

If husband and wife file separate returns, the department may distribute, apportion or allocate gross income between the spouses, if it is determined that such distribution, apportionment or allocation is necessary in order to reflect the proper income of the spouses.

If the department reallocates income or deductions upon its examination of any return, it shall, upon the written request of the taxpayer, disclose to him the basis upon which its reallocation has been made.

In the case of a return made for a fractional part of the year, the exemptions allowed under section 43-1023 shall be reduced respectively to an amount that bears the same ratio to the full exemptions provided as the number of months in the period for which the return is made bea…

In the case of a corporation doing business within the meaning of this title, whether under agreement or otherwise, in such manner as either directly or indirectly to benefit any members or stockholders of the corporation or any person or persons directly or indirectly interested…

A. On or before the due date, including any extensions, for filing the original return for taxable years beginning from and after December 31, 1993, the common parent of an affiliated group may elect to consolidate the taxable income of all members of the affiliated group, regard…

The taxes imposed by this title upon any taxpayer other than a transferee, for whose payment any bank or person other than the taxpayer is liable at law or in equity, may be assessed against such bank or person in the same manner as is provided in chapter 5 of this title for the …

A. The amounts of the following liabilities, except as hereinafter provided in this section and section 43-953, shall be assessed, collected and paid in the same manner and subject to the same provisions and limitations as in the case of a deficiency in a tax imposed by this titl…

The period of limitation for assessment of such liability of a transferee or fiduciary of the taxpayer shall be as follows: 1. In the case of the liability of an initial transferee of the property of the taxpayer, within one year after the expiration of the period of limitation f…

In computing taxable income no deduction shall in any case be allowed in respect of: 1. Personal, living or family expenses, except medical expenses allowed pursuant to section 43-1042. 2. With respect to financial institutions, as defined in section 6-101, that portion of any am…

In this chapter, unless the context otherwise requires: 1. "Arizona adjusted gross income" of a resident individual means the individual's Arizona gross income subject to modifications specified in sections 43-1021 and 43-1022. 2. "Arizona gross income" of a resident individual m…

The following rules shall apply to the definition of "married person" in section 43-1001: 1. An individual who is legally separated from his or her spouse under a decree of dissolution of marriage or of separate maintenance shall not be considered as married. 2. A taxpayer shall …

(L21, Ch. 411, sec. 4) A. There shall be levied, collected and paid for each taxable year on the entire taxable income of every resident of this state and on the entire taxable income of every nonresident that is derived from sources within this state taxes determined in the foll…

(L21, Ch. 412, sec. 15.) A. There shall be levied, collected and paid for each taxable year on the entire taxable income of every resident of this state and on the entire taxable income of every nonresident that is derived from sources within this state taxes determined in the fo…

A. In lieu of the tax imposed under section 43-1011, there shall be levied, collected and paid for each taxable year upon the taxable income of each individual who has been a resident of this state for the entire taxable year and whose taxable income for such year is less than fi…

(Caution: 1998 Prop. 105 applies) A. In addition to any other tax imposed by this chapter, for taxable years beginning from and after December 31, 2020, there shall be levied, collected and paid an income tax surcharge to advance public education in this state as follows: 1. In t…

B. If the election is made under subsection A of this section, all of the following apply: 1. The taxable income of the partnership or S corporation is as follows: (a) For a partnership: (i) For taxable years through December 31, 2022, the Arizona taxable income determined under …

In computing Arizona adjusted gross income, the following amounts shall be added to Arizona gross income: 1. A beneficiary's share of the fiduciary adjustment to the extent that the amount determined by section 43-1333 increases the beneficiary's Arizona gross income. 2. An amoun…

In computing Arizona adjusted gross income, the following amounts shall be subtracted from Arizona gross income: 1. The amount of exemptions allowed by section 43-1023. 2. Benefits, annuities and pensions in an amount totaling not more than $2,500 received from one or more of the…

A. A taxpayer is allowed an exemption of $1,500: 1. For a taxpayer who is blind or if either the taxpayer's central visual acuity does not exceed 20/200 in the better eye with correcting lenses or the taxpayer's visual acuity is greater than 20/200 but is accompanied by a limitat…

A. For taxable years beginning from and after December 31, 2017, in computing Arizona adjusted gross income, a subtraction is allowed under section 43-1022, paragraph 24 for eligible business access expenditures paid or incurred by the taxpayer during the taxable year in order to…

A. In computing Arizona taxable income a subtraction is allowed for qualified crop contributions during the taxable year to one or more charitable organizations. It is not considered to be a double deduction to include both costs of producing the crop and the subtraction in compu…

[Repealed or reserved.]

A. For taxable years beginning from and after December 31, 1993, in computing Arizona adjusted gross income, a taxpayer may subtract from Arizona gross income an amount equal to the cost, exclusive of taxes, interest and other finance charges, but not more than five hundred dolla…

B. For the purposes of this section: 1. "Foreign currency" means the coin and paper money of a country other than the United States that is designated as legal tender, circulates and is customarily used and accepted as a medium of exchange in the country of issuance. 2. "Gas fee"…

A. This section applies if: 1. An item of income was included in gross income for a prior taxable year or years because it appeared that the taxpayer had an unrestricted right to the item. 2. A deduction would be allowable under the internal revenue code or this title for the tax…

A. A taxpayer may elect to take a standard deduction as follows: 1. In the case of a single person or a married person filing separately, the standard deduction is $12,200, subject to subsection H of this section. 2. In the case of a single person who is a head of a household, th…

A. Except as provided by subsections B and C of this section, at the election of the taxpayer, and in lieu of the standard deduction allowed by section 43-1041, in computing taxable income the taxpayer may take the amount of itemized deductions allowable for the taxable year purs…

A. Subject to the following conditions, residents are allowed a credit against the taxes imposed by this chapter for net income taxes imposed by and paid to another state or country on income taxable under this chapter: 1. The credit is allowed only for taxes paid to the other st…

A. There shall be allowed to each resident a credit against the taxes imposed by this title for a taxable year for property taxes accrued or rent, or both, paid in that taxable year, in accordance with subsection B of this section, if all of the following apply: 1. Such resident …

(Caution: 1998 Prop 105 applies) A. Subject to the conditions prescribed by this section and if approved by the qualified electors voting at a statewide general election, for taxable years beginning from and after December 31, 2000 a credit is allowed against the taxes imposed by…

A. Subject to the conditions prescribed by this section, for taxable years beginning from and after December 31, 2020 and ending before January 1, 2042, a credit is allowed against the taxes imposed by this chapter for a taxable year for a taxpayer who is not claimed as a depende…

A. Subject to the conditions prescribed by this section, a credit is allowed against the taxes imposed by this chapter for a taxable year for taxpayers whose Arizona adjusted gross income, plus the amount subtracted for exemptions under section 43-1023 and the amount subtracted f…

A. A credit is allowed against the taxes imposed by this title for a taxable year for each dependent of a taxpayer as provided by this section. B. For taxpayers whose federal adjusted gross income is less than $200,000 for a taxpayer who is a single person, a married person filin…

A. For taxable years beginning from and after June 30, 2011, a credit is allowed against the taxes imposed by this title for net increases in full-time employees residing in this state and hired in qualified employment positions in this state as computed and certified by the Ariz…

A. A credit is allowed against the taxes imposed by this title in an amount determined pursuant to section 41 of the internal revenue code, except that: 1. The amount of the credit is based on the excess, if any, of the qualified research expenses for the taxable year over the ba…

A. For taxable years beginning from and after December 31, 2006 through December 31, 2034, a credit is allowed against the taxes imposed by this title for investment made after June 30, 2006 in qualified small businesses. The amount of the credit is the amount determined and auth…

B. The taxpayer is eligible for the credit if all of the following apply: 1. The taxpayer has a current healthy forest enterprise incentive certification and memorandum of understanding with the Arizona commerce authority pursuant to section 41-1516. 2. The taxpayer processes qua…

B. The amount of the credit is the portion of the tax paid by the partnership or S corporation under section 43-1014 that is attributable to the partner's or shareholder's share of income taxable in this state. C. If the allowable credit exceeds the taxes otherwise due under this…

B. If any portion of the allowable credit exceeds the taxes due under this chapter or if there are no taxes due under this chapter, the amount of the credit not used to offset the taxes under this chapter may be carried forward as a credit under section 43-1742 to the following t…

A. For taxable years beginning from and after December 31, 2005, a credit is allowed against the taxes imposed by this title for a taxpayer whose employee is a member of the Arizona national guard if the employee is placed on active duty. The amount of the credit is one thousand …

A. A credit is allowed against the taxes imposed by this title for expenses that a taxpayer, involved in the commercial production of livestock, livestock products or agricultural, horticultural, viticultural or floricultural crops or products, incurred during the taxable year to…

(Rpld. 1/1/44) A. For taxable years beginning from and after December 31, 2022, a tax credit is allowed against production costs paid by a motion picture production company in this state that are subject to taxation by this state and that are directly attributable to a motion pic…

A. A credit is allowed against the taxes imposed by this title for each resident who is not a dependent of another taxpayer for installing a solar energy device, as defined in section 42-5001, during the taxable year in the taxpayer's residence located in this state. The credit i…

A. A credit is allowed against the taxes imposed by this title for the production of electricity using renewable energy resources. B. The taxpayer is eligible for the credit: 1. If the taxpayer holds title to a qualified energy generator that first produces electricity from and a…

(Rpld. 1/1/32) A. For taxable years beginning from and after December 31, 2012 through December 31, 2030, a credit is allowed against the taxes imposed by this title for qualifying investment and employment in expanding or locating a qualified facility in this state. To qualify f…