Bill Text: AZ HB2680 | 2016 | Fifty-second Legislature 2nd Regular | Introduced
Bill Title: Employers; ex-felons; income tax credits
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2016-05-05 - Introduced in House and read first time [HB2680 Detail]
Download: Arizona-2016-HB2680-Introduced.html
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REFERENCE TITLE: employers; ex-felons; income tax credits |
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State of Arizona House of Representatives Fifty-second Legislature Second Regular Session 2016
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HB 2680 |
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Introduced by Representatives Velasquez, Andrade: Espinoza, Fernandez, Rios
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AN ACT
Relating to income tax credits.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Working opportunity income tax credit; employment of qualified ex-felons; limitations; definitions
A. For taxable years beginning from and after December 31, 2016 through December 31, 2019, and subject to the limitation prescribed by subsection D of this section, a credit is allowed against the taxes imposed by title 43, chapter 10 or 11, Arizona Revised Statutes, as applicable, for qualified employers who employ, during the taxable year, persons who are qualified ex-felons.
B. The amount of the credit under this section is equal to:
1. Five percent of the first six thousand dollars in wages paid to each employee who is a qualified ex-felon and who worked at least one hundred twenty but less than four hundred hours during the taxable year.
2. Ten percent of the first six thousand dollars in wages paid to each employee who is a qualified ex-felon and who worked at least four hundred hours during the taxable year.
C. The department of revenue shall provide suitable forms, with instructions, for taxpayers to claim a credit pursuant to this section. The claim must be filed together with the taxpayer's income tax return for the taxable year for which the credit is claimed.
D. The department of revenue shall allow the credits under this section on a first‑come, first‑served basis, according to the date the department receives the claim, and shall deny credits under this section that exceed in the aggregate a total of two million dollars in any fiscal year.
E. If the allowable credit exceeds the taxes otherwise due under title 43, chapter 10 or 11, Arizona Revised Statutes, on the claimant's income or if there are no taxes due under title 43, chapter 10 or 11, Arizona Revised Statutes, the amount of the credit not used to offset taxes under title 43, chapter 10 or 11, Arizona Revised Statutes, may be carried forward as a credit against tax liability for the next five consecutive taxable years.
F. Co-owners of a business 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. For the purposes of this section:
1. "Internal revenue code" has the same meaning prescribed in section 43-105, Arizona Revised Statutes.
2. "Qualified employer" means a taxpayer that, by employing qualified ex-felons during the taxable year, qualifies for the federal work opportunity tax credit under section 51 of the internal revenue code.
3. "Qualified ex-felon" has the same meaning prescribed in section 51 of the internal revenue code.
Sec. 2. Purpose
Pursuant to section 43-223, Arizona Revised Statutes, the purpose of section 1 of this act is to encourage employers to provide employment opportunities to persons who have been released from prison after being convicted of committing a felony.
Sec. 3. Delayed repeal
This act is repealed from and after December 31, 2020.
