Title 43, Taxation of Income

Every contract made in violation of this article is voidable at the instance of any party other than the taxpayer.

A. Any taxpayer which has suffered the suspension or forfeiture provided for in section 43-1152 may be relieved therefrom upon making application in writing to the department and upon payment of the tax and the interest and penalties for nonpayment of which the suspension or forf…

A. Before any certificate of revivor is issued by the department it shall obtain from the corporation commission an endorsement upon such application of the fact that such corporation then qualifies for revival of corporate powers, rights and privileges. B. Upon the issuance of s…

If a corporation has elected to report income from the sale or other disposition of property on the installment method, and the entire income from the sale has not been reported before the year the corporation ceases to be subject to the tax imposed by this title, the corporation…

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. For taxable years beginning from and after December 31, 2020, a credit is allowed against the taxes imposed by this title for processing qualifying forest products. B. The taxpayer is eligible for the credit if all of the following apply: 1. The taxpayer has a current healthy …

A. For taxable years beginning from and after December 31, 2005 through December 31, 2018, a credit is allowed against the taxes imposed by this title for a taxpayer that is either: 1. Installing one or more solar energy devices, as defined in section 42-5001 and certified pursua…

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…

A. A credit is allowed against the taxes imposed by this title for investment in new renewable energy facilities that produce energy for self-consumption using renewable energy resources if the power will be used primarily for an international operations center. B. The taxpayer i…

(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. 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 in an amount determined pursuant to section 41 of the internal revenue code, except that: 1. The amount of the credit is computed as follows: (a) Add: (i) The excess, if any, of the qualified research expenses for the…

A. A credit is allowed against the taxes imposed by this title for expenses that the taxpayer incurred during the taxable year to purchase real or personal property that is used in the taxpayer's trade or business in this state to control or prevent pollution. The amount of the c…

A. A credit is allowed against the taxes imposed by this title for net increases in qualified employment by the taxpayer of recipients of temporary assistance for needy families as defined in section 46-101 who are residents of this state. The amount of the credit is equal to the…

A. A credit is allowed against the taxes imposed by this title for a taxpayer that purchases coal consumed in generating electrical power in this state. The credit is equal to thirty per cent of the amount paid by the seller or purchaser as transaction privilege or use tax with r…

A. A credit is allowed against the taxes imposed by this title in the amount of thirty percent of the value of real property and improvements donated by the taxpayer to a school district or a charter school for use as a school or as a site for the construction of a school. B. To …

A. Beginning from and after June 30, 2006, a credit is allowed against the taxes imposed by this title for the amount of voluntary cash contributions made by the taxpayer during the taxable year to a school tuition organization that is certified pursuant to chapter 15 of this tit…

A. Beginning from and after June 30, 2009, a credit is allowed against the taxes imposed by this title for the amount of voluntary cash contributions made by the taxpayer during the taxable year to a school tuition organization that is certified pursuant to chapter 15 of this tit…

(Caution: 1998 Prop. 105 applies) A. Except as otherwise provided in this chapter, the following organizations are exempt from the taxes imposed under this title: 1. Organizations that are exempt from federal income tax under section 501 of the internal revenue code. 2. Insurance…

A. An organization that is operated for the primary purpose of carrying on a trade or business for profit is not exempt under any provision of this chapter on the ground that all of its profits are payable to one or more organizations exempt under this section from taxation. B. F…

A. An organization that is denied exemption from federal income tax for engaging in prohibited transactions as provided by section 503 of the internal revenue code is also denied exemption under section 43-1201. The denial applies to taxable years after the taxable year during wh…

Any organization, trust or church or a convention or association of churches that is exempt, except as provided in this section, from taxation under this title by reason of section 43-1201 is subject to the tax imposed under section 43-1111 on its unrelated business taxable incom…

Every organization, otherwise exempt under section 43-1201 but having unrelated business taxable income, shall: 1. File a return, verified by an executive officer under penalties of perjury in the form prescribed by the department on or before the fifteenth day of the fifth month…

A. Every organization that is exempt under section 43-1201, subsection B shall annually file a return with the department on a form prescribed by the department on or before the fifteenth day of the fifth month after the close of the taxable year. The return shall include: 1. The…

In this chapter, unless the context otherwise requires: 1. "Arizona gross income" means: (a) Of a nonresident estate or trust, the taxable income from sources within this state for the taxable year, computed according to the internal revenue code. (b) Of a resident estate or trus…

A. Except for trusts that are taxable as partnerships or corporations under the internal revenue code, the income of estates or of any kind of property held in trust is subject only to the income tax imposed by subsection B of this section. B. There shall be levied, collected and…

Taxes on income of an estate or trust which is taxable to the estate or trust are a charge upon the estate or trust and shall be paid by the fiduciary.

If for any reason the taxes imposed on income of a trust are not paid when due and remain unpaid when such income is distributable to the beneficiaries, or if the income is distributable to the beneficiaries before the taxes are due and the taxes are not paid when due, such incom…

In computing Arizona taxable income of an estate or trust, the estate or trust's share of the fiduciary adjustment shall be added to Arizona gross income to the extent that the amount determined pursuant to section 43-1333 increases the estate or trust's Arizona gross income.

In computing Arizona taxable income of an estate or trust, the following shall be subtracted from Arizona gross income: 1. The estate or trust's share of the fiduciary adjustment to the extent that the amount determined pursuant to section 43-1333 decreases the estate or trust's …

A. The fiduciary adjustment for a resident estate or trust shall be the net amount of the additions and subtractions required by sections 43-1021 and 43-1022 including the addition required by section 43-1021, paragraph 1 or the subtraction required by section 43-1022, paragraph …

If the value of the assets of an estate at the death of the decedent exceeds twenty thousand dollars and if any beneficiary is a nonresident, the final account of the fiduciary shall not be allowed by the probate court unless the fiduciary obtains from the department and files wi…

Within thirty days after receiving a request for a certificate, the department shall either issue the certificate or notify the person requesting the certificate of the amount of tax that shall be paid or the amount of bond, deposit or other security that shall be furnished as a …

The certificate of the department shall not relieve the estate for which the fiduciary acts of liability for any taxes which may become due from the decedent or estate under this title after the issuance of the certificate. It also shall not relieve the fiduciary of the liability…

Every fiduciary who knowingly pays in whole or in part any claim, other than claims for taxes, expenses of administration, funeral expenses, expenses of last illness and family allowance, against the person, estate or trust for whom or for which the fiduciary acts or who makes an…

In the case of income received or accrued during the lifetime of a decedent, or by the decedent's estate during the period of administration, the department shall send by physical mail or e-mail notices proposing to assess the tax and shall commence any proceeding in court withou…

On giving notice to the department, any person acting in a fiduciary capacity shall assume the duties, rights and privileges of a taxpayer with respect to any tax imposed by this title. A person assumes these fiduciary duties until the person gives notice to the department that t…

A. If an estate or trust is a resident of this state and also a resident of another state or country, the estate or trust is allowed a credit against the taxes imposed by this title for net income taxes imposed by and paid to the other state or country, subject to the following c…

A. For taxable years beginning from and after December 31, 2021, a credit is allowed against the taxes imposed by this title for a taxpayer who is a partner in a partnership or a shareholder of an S corporation that elects to pay the tax under section 43-1014. B. The amount of th…

In this chapter, unless the context otherwise requires: 1. "Arizona gross income" of a partnership means its taxable income for the year, computed according to subtitle A, chapter 1, subchapter K of the internal revenue code, exclusive of items requiring separate computation unde…

An individual carrying on a business in partnership shall be liable for income tax only in his individual capacity.

In computing taxable income of each partner, he shall include, whether or not distribution is made to him, his distributive share of the partnership's: 1. Gains and losses from sales or exchanges of capital assets computed pursuant to the internal revenue code. 2. Gains and losse…

In computing the taxable income of a partner for a taxable year the inclusions required by section 43-1412 with respect to a partnership shall be based on the income, gain, loss, deduction or credit of the partnership for any taxable year of the partnership ending within or with …

A. A partnership that is audited by the internal revenue service and that is assessed an imputed underpayment pursuant to section 6225 of the internal revenue code as added by the bipartisan budget act of 2015 (P.L. 114-74), a partnership that makes the election under section 622…

In this chapter, unless the context otherwise requires: 1. "Allocate" includes reserving money for an award of a multiyear educational scholarship or tuition grant for a specific student. 2. "Custodian" means a resident of this state who is a parent or an authorized out-of-home c…