Fifty-fifthSenate LegislatureEngrossed Appropriationstechnical Secondcorrection; Regular Session S.B.

1643public PROPOSEDrecords SENATE(now: AMENDMENTS TO S.B.

1643research; (Reference to printed bill) Strike everything after the enacting clause and insert:

"Sectiondevelopment; 1.

tax credits) State of Arizona Senate Fifty-fifth Legislature Second Regular Session SENATE BILL 1643 AN ACT AMENDING SECTIONS 41-1507, ARIZONA REVISED STATUES;

AMENDING TITLE 41, CHAPTER 10, ARTICLE 1, ARIZONA REVISED STATUTES, BY ADDING SECTION 41-1507.02;

REPEALING SECTION 41-1507.02, ARIZONA REVISED STATUTES;

APPROPRIATING MONIES;

RELATING TO TAX CREDITS.

(TEXT OF BILL BEGINS ON NEXT PAGE) - i - S.B.

1643 Be it enacted by the Legislature of the State of Arizona:

Section 1.

SenateD. Amendments to S.B.

1643 D.

Sec.- 1 - S.B.

1643 Sec.

report;report A.

definitionNOTWITHSTANDING A.ANY OTHER LAW, THE AUTHORITY SHALL RECEIVE APPLICATIONS FROM AND EVALUATE AND CERTIFY TAXPAYERS THAT CARRY FORWARD AN UNUSED BALANCE OF INCOME TAX CREDITS FOR INCREASED RESEARCH ACTIVITIES UNDER SECTION 43-1074.01 OR 43-1168 TO FURTHER QUALIFY FOR REINVESTMENT OF A PORTION OF THE TAXPAYER'S UNUSED BALANCE OF THE TAX CREDIT TO BE USED FOR THE PURPOSES PRESCRIBED IN SUBSECTION F OF THIS SECTION.

NOTWITHSTANDING ANY OTHER LAW, THE AUTHORITY SHALL RECEIVE APPLICATIONS FROM AND EVALUATE AND CERTIFY TAXPAYERS THAT CARRY FORWARD AN UNUSED BALANCE OF INCOME TAX CREDITS TO BE USED FOR THE PURPOSES PRESCRIBED IN SUBSECTION F OF THIS SECTION.

THE AMOUNT OF THE INCOME TAX CREDIT MAYREINVESTMENT IS $.60 PER DOLLAR OF UNUSED INCOME TAX CREDITS UNDER SECTION 43-1074.01 OR 43-1168, AS APPLICABLE, NOT TO EXCEED $10,000,000 PER YEAR PER APPLICANT.APPLICANT OR THE APPLICANT'S CURRENT UNUSED BALANCE OF INCOME TAX CREDITS UNDER SECTION 43-1074.01 OR 43-1168, WHICHEVER IS LESS.

-2-3. Senate Amendments to S.B.

1643THE C.AMOUNT OF THE TAXPAYER'S UNUSED BALANCE OF INCOME TAX CREDITS UNDER SECTION 43-1074.01 OR 43-1168, AS APPLICABLE, SHALL BE REDUCED BY THE AMOUNT OF INCOME TAX CREDITS CONVERTED UNDER THIS SECTION.

AC. TAXPAYER MUST APPLY TO THE AUTHORITY ON OR BEFORE DECEMBER 31 OF EACH TAXABLE YEAR FOR THE REINVESTMENT OF THE UNUSED BALANCE OF INCOME TAX CREDITS ON A FORM THAT IS PRESCRIBED BY THE AUTHORITY AND THAT INCLUDES ALL OF THE FOLLOWING INFORMATION:

A TAXPAYER MUST APPLY TO THE AUTHORITY ON OR BEFORE DECEMBER 31 OF EACH TAXABLE YEAR FOR INCOME TAX CREDIT REINVESTMENT ON A FORM THAT IS PRESCRIBED BY THE AUTHORITY AND THAT INCLUDES ALL OF THE FOLLOWING INFORMATION:

A GENERAL DESCRIPTION OF THE TAXPAYER'S BUSINESS AND THE ACTIVITIES DESCRIBED IN SUBSECTION F OF THIS SECTION THAT WILL BE CONDUCTED BY THE TAXPAYER WILL CONDUCT WITH THE POTENTIAL INCOME TAX CREDITS.CREDIT REINVESTMENT MONIES.

THE AMOUNT OF THE TAXPAYER'S OUTSTANDING TAX CREDITS UNDER SECTION 43-1074.01 OR 43-1168, AS APPLICABLE, TO BE CONVERTED UNDER THIS SECTION.

ON APPROVAL, THE AUTHORITY SHALL PROVIDE A PORTION OF THE APPLICANT'S UNUSED BALANCE OF INCOME TAX CREDITS FOR REINVESTMENT TO THE APPLICANT, SUBJECT TO THE TERMS AND CONDITIONS OF THIS SECTION.

E.- 2 - S.B.

THE1643 AUTHORITYE. MAY NOT APPROVE THE REINVESTMENT OF THE UNUSED BALANCE OF INCOME TAX CREDITS EXCEEDING A TOTAL OF $50,000,000 IN ANY FISCAL YEAR.

REINVESTMENTSTHE AREAUTHORITY ALLOWEDMAY ONNOT AAPPROVE FIRST-COME,INCOME FIRST-SERVEDTAX BASISCREDIT ACCORDINGREINVESTMENTS TOEXCEEDING THEA DATETOTAL THEOF APPLICATION$50,000,000 ISIN FILEDANY WITHFISCAL THEYEAR. AUTHORITY.

INCOME TAX REINVESTMENTS ARE ALLOWED ON A FIRST-COME, FIRST-SERVED BASIS ACCORDING TO THE DATE THE APPLICATION IS FILED WITH THE AUTHORITY.

MONIES DISTRIBUTED BY THE AUTHORITY MAY BE USED ONLY FOR ANY OF THE FOLLOWING PURPOSES:PURPOSES IN THIS STATE:

-3-2. Senate Amendments to S.B.

1643 2.

A CAPITAL EXPENDITURE PROJECT BETWEEN THE TAXPAYER AND AN INSTITUTION OF HIGHER LEARNING.LEARNING OR A CAREER TECHNICAL EDUCATION DISTRICT.

A WORKFORCE DEVELOPMENT PROJECT BETWEEN THE TAXPAYER AND AN INSTITUTION OF HIGHER LEARNING,LEARNING OR A CAREER TECHNICAL EDUCATION DISTRICT, INCLUDING:

A CAPITAL EXPENDITURE PROJECT THAT DEMONSTRATESIS RECEIPTSUPPORTED OFBY MATCHING MONIES FROM A FEDERAL PROGRAM OR A NATIONAL GRANT PROGRAM.

THE AUTHORITY MAY NOT DISTRIBUTE INCOME TAX REINVESTMENT MONIES TO A TAXPAYER BEFORE THE AUTHORITY REVIEWS AND APPROVES THE PROJECT.

IN 2027 AND 2030, THE AUTHORITY SHALL CONDUCT AN ECONOMIC ANALYSIS REGARDING THE INVESTMENTREINVESTMENT OF INCOME TAX CREDITS PURSUANT TO THIS SECTION.

L.Sec.