United States

Arizona: Conformity Legislation Enacted

Apr 16, 2018
From KPMG TaxWatch

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Arizona House Bill 2647, signed into law on April 5, 2018, updates the state’s conformity to the Internal Revenue Code. For general tax purposes, the definition of Internal Revenue Code, for tax years beginning from and after December 31, 2017, means the Internal Revenue Code of 1986, as amended and in effect as of January 1, 2018. For purposes of computing Arizona income taxes, Internal Revenue Code means, for taxable years beginning from and after December 31, 2017, the Internal Revenue Code of 1986 as amended and in effect on January 1, 2017. For tax years beginning from and after December 31, 2016 through December 31, 2017, the Code likewise means the Internal Revenue Code as in effect on January 1, 2017, but includes those provisions of The Disaster Tax Relief and Airport and Airway Extension Act of 2017 (P.L. 115-63), The Tax Cuts and Jobs Act (P.L. 115-97), and The Bipartisan Budget Act of 2018 (P.L. 115-123) that are effective retroactively during taxable years beginning from and after December 31, 2016 through December 31, 2017. In short, for 2018, Arizona does not adopt the tax changes included in the Tax Cuts and Jobs Act (TCJA), but it does pick up the changes in the TCJA that became effective for tax year 2017. Please stay tuned to TWIST for future conformity updates.


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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.