On Thursday, Governor Doug Ducey signed bipartisan, unanimous tax relief, aligning the state’s tax law with federal law and resulting in $600 million in savings for Arizona taxpayers.
“Arizona taxpayers and small businesses were able to weather the unprecedented economic hardship last year during the pandemic in part to action taken by our federal partners,” said Governor Ducey. “By conforming our tax laws to the federal code in a bipartisan manner, we’re delivering millions in state income tax relief to our workers and small businesses who’ve played an essential role in getting our economy back on track and fueling our recovery. Thank you Senator Vince Leach and Representative Ben Toma for your leadership in delivering relief for everyday Arizonans.”
Senate Bill (SB) 1752 conforms Arizona’s state tax code to the changes made to federal tax law to help taxpayers and small businesses navigate the COVID-19 pandemic.
In addition to the $600 million tax cut, businesses will be provided immediate relief for any losses suffered during the pandemic, full conformity to federal tax treatment of Paycheck Protection Program loans to exempt them from state income tax, and a state income tax exemption for the first $10,000 in unemployment insurance benefits received in 2020.