Income/Franchise Tax Arizona: New law updates Internal Revenue Code conformity date; decouples from §108(i) & five-year NOL carrybacks

H.B. 2156, signed by gov. 4/27/10. Effective 90 days after the close of the legislative session (i.e., on 7/29/10), new law generally updates corporate and personal income tax statutory references to the Internal Revenue Code (IRC), referring to the federal law as amended and in effect as of January 1, 2010, (previously January 1, 2009). The law also specifically decouples from certain provisions, including the:

- Deferral of recognition of income from discharge of certain business indebtedness as enacted by the federal American Recovery and Reinvestment Act of 2009 (ARRA) under IRC Sec. 108(i), with necessary adjustments in current and future years provided in the addition and subtraction provisions for both individuals and businesses;
and
- Five-year net operating loss (NOL) carryback provisions for businesses under both the ARRA and the Worker, Homeownership, and Business Assistance Act of 2009 (WHBAA).