Gov. Doug Ducey on Wednesday signed into law a bill aligning Arizona’s tax code with federal law.
The move will not only make it easier for taxpayers to prepare their taxes before the new May 17 federal and state deadlines, but Ducey’s office claims Senate Bill 1752 will result in $600 million in savings for Arizona taxpayers. The bill was passed unanimously by the Arizona Legislature.
“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,” Ducey said in a statement. “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.”
Besides providing a tax cut, the legislation will allow for Arizona businesses to receive immediate relief for any losses suffered during the pandemic, according to the governor’s office. Paycheck Protection Program loans and the first $10,200 in unemployment insurance benefits received in 2020 for some households will be exempt from state income taxes.