Governor Doug Ducey on Wednesday signed into law a bill bringing Arizona’s tax code in line with federal law.
The move will not only make it easier for taxpayers to prepare their taxes ahead of new federal and state deadlines on May 17, but Ducey’s office says Senate Bill 1752 will result in $600 million in savings for taxpayers in arizona. The bill was passed unanimously by the Arizona Legislature.
“Arizona’s taxpayers and small businesses were able to weather last year’s unprecedented economic hardship during the pandemic, in part because of the actions taken by our federal partners,” Ducey said in a statement. “By bringing our tax laws into line with the federal code in a bipartisan way, we are providing millions in tax relief to our workers and small businesses who have played a critical role in getting our economy back on track and fueling our recovery. ”
In addition to providing a tax reduction, the legislation will allow Arizona businesses to receive immediate relief for any losses incurred during the pandemic, according to the governor’s office. Paycheck Protection Program loans and the first $10,200 of unemployment insurance benefits received in 2020 for certain households will be exempt from state income tax.