Arizona Revised Statutes Title 43. Taxation of Income § 43-1072.02. Credit for increased transaction privilege or excise tax paid for education

A. Subject to the conditions prescribed by this section, for taxable years beginning from and after December 31, 2020 and ending before January 1, 2042, a credit is allowed against the taxes imposed by this chapter for a taxable year for a taxpayer who is not claimed as a dependent by any other taxpayer and whose federal adjusted gross income is:

B. The credit is considered to be in mitigation of increased tax rates pursuant to § 42-5010.01 and § 42-5155, subsection E.

C. The amount of the credit may not exceed $25 for each person who is a resident of this state and who is either the taxpayer, the taxpayer's spouse who does not file a return or a dependent and shall not exceed $100 for all persons in the taxpayer's household as defined in § 43-1072.

D. If the allowable amount of the credit exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against income taxes shall be paid in the same manner as a refund granted under § 42-1118. Refunds made pursuant to this subsection are subject to setoff under § 42-1122.

E. A person who is sentenced for at least sixty days of the taxable year to the custody of the federal bureau of prisons, the state department of corrections or a county jail is not eligible to claim a credit pursuant to this section.

F. The department shall make available suitable forms with instructions for claimants. Claimants who certify on the prescribed form that they have no income tax liability for the taxable year and who do not meet the filing requirements of § 43-301 are not required to file an individual income tax return. The claim shall be in a form prescribed by the department.

G. A tax return or form prescribed pursuant to subsection F of this section must have:

H. A taxpayer that claims a credit under this section may not claim the credit under § 43-1072.01 for the same taxable year. The credits under this section and § 43-1072.01 shall be collectively referred to as the excise tax credit and claimed using the same credit form or line on the tax return. For the purposes of the report required by § 43-224, the department shall report the credits under § 43-1072.01 and this section together as one credit.