tax corrections act of 2026
SB1430 is Arizona’s 2026 tax corrections act. The bill makes a large number of technical and policy updates to the state’s transaction privilege tax and use tax statutes, primarily in A.R.S. sections 42-5061 and 42-5159. It revises, restates, and in some cases clarifies exemptions and deductions for retail sales and use tax, including provisions affecting medical goods, food, agricultural inputs, manufacturing and mining equipment, aircraft and transportation-related property, utilities and energy storage, computer data centers, renewable energy credits, environmental remediation, and certain nonprofit and government-related transactions.
The bill also updates definitions and cross-references, corrects statutory wording, and aligns related provisions across the tax code. In addition to the sales and use tax changes, it amends A.R.S. 43-1504 governing corporate donations to school tuition organizations, preserving the low-income scholarship framework and related eligibility rules while making conforming changes. The bill was enacted as Chapter 30 and signed by the governor on April 9, 2026.
SB1430 affects Arizona tax law by reorganizing and refining numerous exemptions and deductions in the retail classification and use tax provisions, which can change tax treatment for businesses, nonprofits, schools, utilities, manufacturers, agricultural producers, airlines, and other specified purchasers. It also repeals a prior version of A.R.S. 42-5159 and replaces it with a revised exemptions section, creating a consolidated and updated statutory framework. The scholarship-related amendment to A.R.S. 43-1504 continues the corporate scholarship tax credit structure for school tuition organizations and low-income students, with conforming language changes.
The bill appears to have been broadly supported and noncontroversial in the legislative process. It advanced through Senate and House committees and floor votes with unanimous or near-unanimous support, including 7-0 committee votes and 27-0 and 51-0 third-reading votes in the Senate and House, respectively. The absence of recorded opposition and the bill’s “tax corrections” framing suggest it was viewed largely as a technical or cleanup measure rather than a major policy fight.
No major contention is reflected in the available committee or floor history, and there are no transcript snippets indicating substantive debate. The main areas that could have drawn attention, based on the text, are the breadth of tax exemptions and deductions for specific industries and entities, including manufacturing, mining, aviation, data centers, renewable energy, nonprofits, and school-related services. The scholarship provisions in A.R.S. 43-1504 could also be sensitive in other contexts because they relate to private school tuition support and eligibility rules, but no recorded opposition appears in the materials provided.