HB2629 • 2026

corporate income tax; minimum

HB2629 - corporate income tax; minimum

Labor Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Lorena Austin, Anna Abeytia, Cesar Aguilar, Junelle Cavero, Quantá Crews, Brian Garcia, Nancy Gutierrez, Sarah Liguori, Betty J Villegas
Last action: 2026-01-21
Official status: House second read
Effective date: Not listed

Plain English Breakdown

The official status indicates the bill passed both chambers, but the effective date depends on a two-thirds legislative vote or governor's signature as noted in Section 3.

HB2629: Changes to Corporate Income Tax Minimums

This bill sets a minimum tax of $1,000 for corporations with fifty or more employees that are not exempt under other laws.

What This Bill Does

Amends section 43-1111 of the Arizona Revised Statutes regarding corporate income taxes.
Sets a new minimum tax requirement of $1,000 for corporations that have fifty or more employees and are not exempt under other laws.
Applies this rule to taxable years beginning after December 31, 2026.

Who It Names or Affects

Corporations operating in Arizona with fifty or more employees

Terms To Know

Taxable year: A specific period of time used to calculate how much tax a business owes.
Minimum tax amount: The lowest dollar value a corporation must pay in taxes even if its calculated income tax is lower than that number.

Limits and Unknowns

This bill does not change the minimum tax for corporations with fewer than fifty employees.
Corporations exempt under sections 43-1126 or 43-1201 are still excluded from this requirement.

Bill History

2026-01-21 House
House second read
2026-01-20 House
House Rules: None
2026-01-20 House
House Ways & Means: None
2026-01-20 House
House first read

Official Summary Text

HB2629 - corporate income tax; minimum

Current Bill Text

Read the full stored bill text

HB2629 - 572R - I Ver

REFERENCE TITLE:
corporate income tax; minimum

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2629

Introduced by

Representatives
Austin: Abeytia, Aguilar, Cavero, Crews, Garcia, Gutierrez, Liguori, Villegas

AN
ACT

amending section 43-1111, Arizona
Revised Statutes; relating to corporate income tax.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 43-1111, Arizona Revised
Statutes, is amended to read:

START_STATUTE
43-1111.

Tax rates for corporations; minimum

A.
There shall be levied,
collected and paid for each taxable year
upon

on
the entire Arizona taxable income of every corporation,
unless exempt under section 43-1126 or 43-1201 or as otherwise
provided in this title or by law, taxes in an amount of the greater of
fifty dollars

$50
or:

1. For taxable years beginning through December 31,
2013, 6.968
per cent

percent
of net
income.

2. For taxable years beginning from and after
December 31, 2013 through December 31, 2014, 6.5
per cent

percent
of net income.

3. For taxable years beginning from and after
December 31, 2014 through December 31, 2015, 6.0
per cent

percent
of net income.

4. For taxable years beginning from and after
December 31, 2015 through December 31, 2016, 5.5
per cent

percent
of net income.

5. For taxable years beginning from and after
December 31, 2016, 4.9
per cent

percent
of
net income.

B. Notwithstanding subsection A of
this section, the minimum tax amount for a corporation that has fifty or more
employees and that is not otherwise exempt from tax under this title is $1,000.

END_STATUTE

Sec. 2.
Applicability

Section 43-1111, Arizona Revised
Statutes, as amended by this act, applies to taxable years beginning from and
after December 31, 2026.

Sec. 3.
Requirements for enactment; two-thirds vote

Pursuant to article IX, section 22,
Constitution of Arizona, this act is effective only on the affirmative vote of
at least two-thirds of the members of each house of the legislature and is
effective immediately on the signature of the governor or, if the governor
vetoes this act, on the subsequent affirmative vote of at least three-fourths
of the members of each house of the legislature.