Bill Text: AZ HB2502 | 2012 | Fiftieth Legislature 2nd Regular | Introduced
Bill Title: Tax credit; schools; soft capital
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2012-01-19 - Referred to House WM Committee [HB2502 Detail]
Download: Arizona-2012-HB2502-Introduced.html
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REFERENCE TITLE: tax credit; schools; soft capital |
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State of Arizona House of Representatives Fiftieth Legislature Second Regular Session 2012
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HB 2502 |
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Introduced by Representatives Yee: Proud, Senators Aboud, Nelson
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AN ACT
Relating to Corporate income tax credits for soft capital donations to public schools.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Corporate income tax credit for soft capital donations to public schools; definitions
A. Notwithstanding section 43‑223, Arizona Revised Statutes, for taxable years 2013 and 2014, a credit is allowed against the taxes imposed by title 43, chapter 11, Arizona Revised Statutes, for soft capital that is donated by the taxpayer during taxable year 2013 or 2014 to a public school. A public school may reject a donation under this section. If a public school rejects a donation under this section, the taxpayer is not allowed a tax credit under this section.
B. The amount of the credit is the fair market value of the taxpayer's donation and is preapproved by the department of revenue pursuant to subsection D of this section except that the maximum credit a taxpayer may claim under this section is ten thousand dollars in a taxable year.
C. The department of revenue:
1. Shall not allow tax credits under this section that exceed in the aggregate a combined total of five million dollars in any taxable year.
2. Shall preapprove tax credits under this section subject to subsection D of this section.
3. Shall allow the tax credits under this section on a first come, first served basis.
D. For the purposes of subsection C, paragraph 2 of this section, before making a donation to a public school, the taxpayer must notify the public school that the taxpayer intends to make a donation of soft capital to the public school and provide the public school with the fair market value of the donation. Before accepting the donation, the public school shall request preapproval from the department of revenue for the taxpayer's intended donation amount. The department of revenue shall preapprove or deny the requested amount within twenty days after receiving the request from the public school. If the department of revenue preapproves the request, the public school shall immediately notify the taxpayer that the requested amount was preapproved by the department of revenue. In order to receive a tax credit under this subsection, the taxpayer shall make the donation to the public school within ten days after receiving notice from the public school that the requested amount was preapproved. If the public school does not receive the preapproved donation from the taxpayer within the required ten days, the public school shall immediately notify the department of revenue and the department of revenue shall no longer include this preapproved contribution amount when calculating the limit prescribed in subsection C, paragraph 1 of this section.
E. If the allowable tax credit exceeds the taxes otherwise due under title 43, Arizona Revised Statutes, on the claimant's income, or if there are no taxes due under title 43, Arizona Revised Statutes, the taxpayer may carry the amount of the claim not used to offset the taxes under title 43, Arizona Revised Statutes, forward for not more than five consecutive taxable years' income tax liability.
F. Co-owners of a business, including corporate partners in a partnership, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.
G. The credit allowed by this section is in lieu of any deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.
H. The department of revenue shall adopt rules and publish and prescribe forms and procedures necessary for the administration of this section.
I. For the purposes of this section:
1. "Public school" means a school that is part of a school district, a joint technical education district or a charter school.
2. "Soft capital" means surplus items owned by a corporation, including computers, furniture and other fixtures. Soft capital does not include items that are manufactured by the corporation.
