On February 25, 2013, HB 2342, a bill to increase the amount of research and development (R&D) tax credits annually given out by Arizona, was overwhelmingly approved by the Arizona House. The approved bill would increase the amount of the Arizona refundable credit from $5 million to $10 million in 2014, and to $15 million in 2015 and each year thereafter. House Speaker Andy Tobin (R) stated that “the intent of this language is to help small business Arizona.” In 2010, the Arizona Legislature created a refundable credit for companies with less than 150 employees; the 2010 bill allowed small companies to claim 75 percent of the credit in their first year, regardless of their tax liability. HB 2342 now proceeds to the Arizona Senate, where it is expected to pass without significant opposition.
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