WeVote
Log In

Bill

Bill

SB 1387

tax expenditures; credits; review schedule

57th Legislature - First Regular Session Introduced by Eva Burch and 2 co-sponsors

Arizona mandates periodic review of tax credits and expenditures to evaluate fiscal impact and effectiveness, potentially eliminating or restructuring underperforming business tax incentives.

Senate Second Reading
0
WeVote Research Nonpartisan
Bill Summary · SB 1387

Legislative bill overview

SB 1387 establishes a structured review schedule for Arizona's tax expenditures and tax credits, requiring periodic evaluation of their fiscal and policy effectiveness. The bill aims to create accountability mechanisms for tax breaks and incentives currently benefiting various industries and entities across the state.

Why is this important

Tax expenditures—revenue foregone through credits, deductions, and exemptions—represent a significant portion of state budgets but often operate without regular scrutiny. This bill addresses a governance gap by mandating systematic review, potentially identifying underperforming incentives, reducing duplicative programs, or reallocating resources to higher-impact initiatives. The outcome could affect both state revenue and the competitiveness of Arizona's business environment.

Potential points of contention

  • Business uncertainty: Companies relying on existing tax credits may face discontinuation or modification, creating planning challenges and potential opposition from beneficiary industries
  • Revenue vs. incentives debate: Legislators will disagree on whether eliminating "ineffective" credits prioritizes state revenue or whether strategic tax incentives are essential for economic development
  • Implementation burden: Regular reviews require dedicated staff and resources; critics may argue this creates bureaucratic overhead while supporters see it as necessary fiscal discipline

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.