SB 1331 — income tax subtraction; capital gains

Fifty-seventhSenate LegislatureEngrossed Financeincome Firsttax Regularsubtraction; Session S.B.

1331capital PROPOSEDgains State of Arizona Senate Fifty-seventh Legislature First Regular Session SENATE AMENDMENTSBILL TO1331 S.B.AN ACT AMENDING SECTION 43-1022, ARIZONA REVISED STATUTES;

1331RELATING (ReferenceTO toINCOME printedTAX. bill) Amendment instruction key:

[GREEN(TEXT UNDERLININGOF INBILL BRACKETS]BEGINS indicatesON textNEXT addedPAGE) to- statutei or- previouslyS.B. enacted session law.

[Green1331 underliningBe init brackets]enacted indicatesby textthe addedLegislature toof newthe sessionState lawof orArizona: text restoring existing law.

[GREEN STRIKEOUT IN BRACKETS] indicates new text removed from statute or previously enacted session law.

[Green strikeout in brackets] indicates text removed from existing statute, previously enacted session law or new session law.

<<Green carets>> indicate a section added to the bill.

<<Green strikeout in carets>> indicates a section removed from the bill.

The bill as proposed to be amended is reprinted as follows:

Senate5. Amendments to S.B.

1331 5.

The amount of exploration expenses that is determined pursuant to section 617 of the internal revenue code, that has been deferred in a taxable year ending before January 1, 1990 and for which a subtraction has not- previously1 been- made.S.B.

1331 not previously been made.

Any amount of qualified educational expenses that is distributed from a qualified state tuition program determined pursuant to -2-section Senate529 Amendmentsof tothe S.B.internal revenue code and that is included in income in computing federal adjusted gross income.

1331 section 529 of the internal revenue code and that is included in income in computing federal adjusted gross income.

(b) In taxable years beginning from and after December 31, 2012 through December 31, 2013, an amount determined in the year the asset was placed in service based on the calculation in subdivision (a) of this paragraph.- 2 - S.B.

1331 paragraph.

-3-19. Senate Amendments to S.B.

1331 19.

The portion of the net operating loss carryforward that would have been allowed as a deduction in the current year pursuant to section 172- of3 the- internalS.B. revenue code if the election described in section 172(b)(1)(H) of the internal revenue code had not been made in the year of the loss that exceeds the actual net operating loss carryforward that was deducted in arriving at federal adjusted gross income.

1331 172 of the internal revenue code if the election described in section 172(b)(1)(H) of the internal revenue code had not been made in the year of the loss that exceeds the actual net operating loss carryforward that was deducted in arriving at federal adjusted gross income.

[THIS PARAGRAPH ONLY APPLIES TO TAXPAYERS WITH AN ARIZONA ADJUSTED GROSS INCOME OF $250,000 FOR A SINGLE INDIVIDUAL OR HEAD OF HOUSEHOLD AND $500,000 FOR A MARRIED COUPLE FILING JOINTLY.] For the purposes of this paragraph, a transferee that receives an asset by gift or at the death of a transferor is considered to have acquired the asset when the asset was acquired by the transferor.

If the date an asset -4-is Senateacquired Amendmentscannot tobe S.B.verified, a subtraction under this paragraph is not allowed.

1331 is acquired cannot be verified, a subtraction under this paragraph is not allowed.

(a)- "Legal4 tender"- meansS.B. a medium of exchange, including specie, that is authorized by the United States Constitution or Congress to pay debts, public charges, taxes and dues.

1331 (a) "Legal tender" means a medium of exchange, including specie, that is authorized by the United States Constitution or Congress to pay debts, public charges, taxes and dues.

To the extent not already excluded from Arizona gross income under the internal revenue code, the value of virtual currency and -5-non-fungible Senatetokens Amendmentsthe taxpayer received pursuant to S.B.an airdrop at the time of the airdrop.

1331 non-fungible tokens the taxpayer received pursuant to an airdrop at the time of the airdrop.

(b)- "Non-fungible5 token"- hasS.B. the same meaning prescribed in section 43-1028.

1331 (b) "Non-fungible token" has the same meaning prescribed in section 43-1028.

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