ARIZONA STATE SENATE
Forty-seventh Legislature, Second Regular Session
FACT SHEET FOR S.B. 1009
income tax credit; disabled veterans
Purpose
Establishes a refundable income tax credit for disabled veterans.
Background
The Governor established the Arizona Veterans Task Force in 2005 to better address issues that pertain to Arizona veterans. The Task Force discussed a proposal with the intent to appropriate $6.6 million to provide an income tax credit for Arizona disabled veterans in an amount of $300, prorated by the percentage of the veteran’s disability. This proposal was not approved and did not make the Task Force’s final recommendations.
According to the Arizona Department of Veterans’ Services (ADVS), there are 57,893 disabled veterans in Arizona. Veterans are rated at increments of 10 percent reflecting the degree of disability as determined by the United States Department of Veterans Affairs. Of the 57, 893 disabled veterans in Arizona, 17,481 are in the 10% disabled category and 5,442 are in the 100% category.
According to ADVS, S.B. 1009 has an annual estimated cost to the state General Fund of $11 million. According to the Department of Revenue, S.B. 1009 has an annual estimated cost to the state General Fund of $16.5 million.
Provisions
1. Establishes a refundable income tax credit for disabled veterans who reside in this state beginning tax year 2007.
2. Calculates the credit amount by multiplying $500 by the percentage of disability as determined by the United States Department of Veteran Affairs.
3. Adds the income tax credit for disabled veterans to the Joint Legislative Tax Credit Review Committee schedule in 2011.
4. Makes technical changes.
5. Contains a purpose statement.
6. Becomes effective January 1, 2007.
Prepared by Senate Research
February 7, 2006
SL/HG/jas