ARIZONA STATE SENATE
Forty-seventh Legislature, Second Regular Session
FACT SHEET FOR S.B. 1155
income tax credit review schedule
Purpose
Reschedules income tax credits regarding employment of Temporary Assistance for Needy Family recipients and contributions to charitable organizations that provide assistance to the working poor for review by the Joint Legislative Income Tax Credit Review Committee.
Background
The Joint Legislative Income Tax Credit Review Committee (Committee) was established by Laws 2002, Chapter 238 (H.B. 2186). The Committee is comprised of five members from the House Ways and Means Committee and five members of the Senate Finance Committee. The Chairmen from these standing committees act as Cochairs for this committee.
The Committee determines the original purpose of existing tax credits, establishes a standard for evaluating and measuring the success or failure of the tax credits and then reviews the individual and corporate income tax credits pursuant to the statutory schedule. It requires that any new individual or corporate income tax credit enacted by the Legislature include a specific review date five years after the effective date of the credit. The Committee then determines whether the credit should be amended or repealed.
The Committee met once on December 14, 2005, to review the credit for employment of Temporary Assistance for Needy Family (TANF) recipients and the credit for contributions to charitable organizations that provide assistance to the working poor. In 2006, the Committee will review the family income tax credit, the credit for contributions to school tuition organizations, the tax credit for public school fees and contributions, the credit for donation of school site and the credit for solar hot water heater plumbing stub outs and electric vehicle recharge outlets.
There is no anticipated fiscal impact associated with S.B. 1155.
Provisions
1. Reschedules the income tax credits for the employment of TANF recipients and contributions to charitable organizations that provide assistance to the working poor on the income tax review schedule in 2010.
2. Makes technical changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
January 17, 2006
SL/GC/jas