Bill Text: AZ HB2053 | 2025 | Fifty-seventh Legislature 1st Regular | Introduced
Bill Title: Tax credit; private land; border
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced) 2025-01-15 - House read second time [HB2053 Detail]
Download: Arizona-2025-HB2053-Introduced.html
PREFILED JAN 08 2025
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REFERENCE TITLE: tax credit; private land; border |
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State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025
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HB 2053 |
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Introduced by Representatives Kolodin: Carter P, Gillette, Marshall
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An Act
amending section 43-222, Arizona Revised Statutes; amending title 43, chapter 10, article 5, Arizona Revised Statutes, by adding section 43-1080; amending title 43, chapter 11, article 6, Arizona Revised Statutes, by adding section 43-1169; 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. Section 43-222, Arizona Revised Statutes, is amended to read:
43-222. Income tax credit review schedule
The joint legislative income tax credit review committee shall review the following income tax credits:
1. For years ending in 0 and 5, sections 43-1079.01, 43-1080, 43-1088, 43-1089.04, 43-1167.01, 43-1169 and 43-1175.
2. For years ending in 1 and 6, sections 43-1072.02, 43-1074.02, 43-1075, 43-1076.01, 43-1077, 43-1078, 43-1083, 43-1083.02, 43-1162, 43-1164.03 and 43-1183.
3. For years ending in 2 and 7, sections 43-1073, 43-1082, 43-1085, 43-1086, 43-1089, 43-1089.01, 43-1089.02, 43-1089.03, 43-1164, 43-1165, and 43-1181.
4. For years ending in 3 and 8, sections 43-1074.01, 43-1168, 43-1170 and 43-1178.
5. For years ending in 4 and 9, sections 43-1073.01, 43-1081.01, 43-1083.03, 43-1084, 43-1164.04, 43-1164.05 and 43-1184.
Sec. 2. Title 43, chapter 10, article 5, Arizona Revised Statutes, is amended by adding section 43-1080, to read:
43-1080. Credit for federal use of private land for international boundary wall construction
A. A credit is allowed against the taxes imposed by this title for the fair market value of land located in this state that a taxpayer privately owns and allows the federal government to use for construction of an international boundary wall.
B. The amount of the credit is the fair market value of the portion of the land used for construction of an international boundary wall as determined in an appraisal as defined in section 32-3601 that is paid for by the taxpayer.
C. Co-owners of a business, including partners in a partnership and shareholders of an S corporation as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. If the land is owned by a husband and wife who file separate returns for a taxable year in which they could have filed a joint return, they may determine between them the share of the credit each will claim. The total of the credits allowed all such co-owner may not exceed the amount that would have been allowed a sole owner.
D. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.
Sec. 3. Title 43, chapter 11, article 6, Arizona Revised Statutes, is amended by adding section 43-1169, to read:
43-1169. Credit for federal use of private land for international boundary wall construction
A. A credit is allowed against the taxes imposed by this title for the fair market value of land located in this state that a taxpayer privately owns and allows the federal government to use for construction of an international boundary wall.
B. The amount of the credit is the fair market value of the portion of the land used for construction of an international boundary wall as determined in an appraisal as defined in section 32-3601 that is paid for by the taxpayer.
C. 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 co-owner may not exceed the amount that would have been allowed a sole owner.
D. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.
Sec. 4. Purpose
Pursuant to section 43-223, Arizona Revised Statutes, the legislature enacts sections 43-1080 and 43-1169, Arizona Revised Statutes, as added by this act, to support private landowners in this state that are allowing the federal government to use a portion of the private landowner's land for construction of an international boundary wall.
