Arizona Revised Statutes Title 41. State Government § 41-1507.01. Certification of basic research payments to a university

A. For taxable years beginning from and after December 31, 2014, before a taxpayer can apply to the department of revenue for certification of additional income tax credits for increased research activities involving basic research payments to a university under § 43-1074.01, subsection A, paragraph 1, subdivision (c) or § 43-1168, subsection A, paragraph 1, subdivision (d), a taxpayer shall obtain certification from the authority that the basic research payments meet the requirements of this section. The taxpayer shall apply to the authority for certification of the basic research payments at a time, on a form and in a manner prescribed by the authority.

B. The authority shall process and evaluate each application for certification of basic research payments to a university up to an amount that corresponds to ten million dollars per calendar year in aggregate combined projected additional tax credits under § 43-1074.01, subsection A, paragraph 1, subdivision (c) and § 43-1168, subsection A, paragraph 1, subdivision (d). The applicant shall identify the amount of projected additional tax credits corresponding to the basic research payments to a university sought to be certified. The amount of additional tax credits a taxpayer may claim following certification by the authority must be established by the department of revenue under § 43-1074.01, subsection A, paragraph 1, subdivision (c) or § 43-1168, subsection A, paragraph 1, subdivision (d). The authority shall process and evaluate applications for certification under this section through a competitive process pursuant to subsection C of this section that may include third-party peer review. An application for certification must include:

C. The authority shall establish the time and manner of the competitive process used in issuing certifications. In determining which applications must be issued certifications, the authority or its designee shall evaluate among all applicants for certification of basic research payments, the relative impact of the research activities involving payments to a university from the standpoint of furthering one or more of the following considerations:

D. Following review of each application pursuant to subsection C of this section, the authority shall either:

E. The authority shall adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this section.

F. Any information gathered from a business for the purposes of this section is confidential and may not be disclosed to the public except that the information must be transmitted to the department of revenue.