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Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

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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 source material does not provide details on how the existing corporate income tax rates are affected beyond setting a minimum tax for certain corporations. The requirement for a two-thirds vote is mentioned but not detailed as part of what the bill does, only in terms to know.

Minimum Corporate Income Tax

This bill sets a minimum tax of $1,000 for corporations with fifty or more employees in Arizona that are not exempt from taxes.

What This Bill Does

  • Sets a $1,000 minimum tax for corporations that have at least 50 employees and are not exempt from taxes.

Who It Names or Affects

  • Corporations with fifty or more employees in Arizona

Terms To Know

Requirements for Enactment (RFE)
Rules that determine how a bill must be passed to become law, such as needing a two-thirds vote.

Limits and Unknowns

  • The bill does not specify what happens if the governor vetoes it.
  • It is unclear when exactly this bill will take effect after passing both houses of the legislature.

Bill History

  1. 2026-01-21 House

    House second read

  2. 2026-01-20 House

    House Rules: None

  3. 2026-01-20 House

    House Ways & Means: None

  4. 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.