United States: Arizona Corporate Income Tax For Small Businesses

Last Updated: July 6 2004
Article by Patrick Derdenger

Originally published in 2001

1 INTRODUCTION.

This outline focuses on the Arizona Corporate Income Tax and will examine in detail the mechanics of taxing multi-state corporations that conduct business both in Arizona and other states.

This Outline will approach the subject in the following "building-block style."

  • Structure of Arizona Corporate Income Tax. To set into focus the taxation of multi-state businesses, we’ll first start with an overview of the structure of the Arizona Corporate Income Tax.
  • Corporation Doing Business Only in Arizona. Next, we will apply the Arizona Corporate Income Tax structure to a Corporate taxpayer that is doing business only in Arizona.
  • Multi-State Corporation. The Arizona Corporate Income Tax Structure will then be applied to a multi-state corporation that has income from business activities carried on both in Arizona and in other states. The focus of this part of the Outline will be on UDIPTA’s formula apportionment methodology.
  • Unitary Group. Finally, we will turn our attention to the income taxation of a corporate taxpayer that is a part of a larger unitary, corporate group. The focus of this part of the Outline will be on the "Unitary Business" concept.

2. OVERVIEW OF THE ARIZONA CORPORATE INCOME TAX.

2.1 The Arizona Corporate Income Tax Conforms to the Internal Revenue Code.

Arizona has incorporated the Internal Revenue Code of 1986, as amended, in effect on January 1, 1995. See A.R.S. § 43-105. The Internal Revenue Code serves as the "underpinnings" of the Arizona income tax structure, both for corporations and individuals.

2.2 Starting Point: Federal Taxable Income Equals Arizona Gross Income.

The Arizona corporate income tax "piggybacks" or conforms to the federal income tax. The starting point in determining Arizona tax liability is the corporate taxpayer’s federal taxable income. Specifically, "Arizona gross income" equals "federal taxable income." A.R.S. § 43-1101.1. NOTE, this is different from the starting point for individual income taxation where Arizona gross income equals Federal adjusted gross income. A.R.S. § 43-1001.2. As a result of starting with federal taxable income, most of the changes made by the Tax Reform Act of 1986 "flow through" to Arizona.

2.3 Federal Consolidated Return.

A corporate taxpayer which has joined in the filing of a federal consolidated return but does not file an Arizona combined return must use a hypothetical starting point for federal taxable income. The starting point will be federal taxable income computed as if the corporation had filed a separate federal income tax return. Department of Revenue Letter to Commerce Clearing House.

2.4 Adjustments to Arizona Gross Income.

Certain adjustments must be made to "Arizona gross income" (federal taxable income) to arrive at "Arizona taxable income." A.R.S. § 43-1101.2. Those adjustments take the form of the additions and subtractions of A.R.S. §§ 43-1121 and 43-1122, respectively, and the other adjustments specified in A.R.S. §§ 43-1123 through 43-1130.01.

2.5 Additions to Arizona Gross Income for Corporations.

A.R.S. § 43-1121 requires that the following items be added to Arizona gross income:

1. The amounts computed pursuant to § 43-1021, paragraphs 4 through 10 and 14.

2. The amount of dividend income received from corporations and allowed as a deduction pursuant to § 243, 244 and 245 of the internal revenue code.

3. Taxes which are based on income paid to states, local governments or foreign governments and which were deducted in computing federal taxable income. (Effective 1/1/98, the subtraction for Arizona corporate income taxes paid was repealed.)

4. Expenses and interest relating to tax-exempt income on indebtedness incurred or continued to purchase or carry obligations the interest on which is wholly exempt from the tax imposed by this title. Financial institutions, as defined in § 6-101, shall be governed by § 43-961, paragraph 2.

5. Commissions, rentals and other amounts paid or accrued to a domestic international sales corporation controlled by the payor corporation if the domestic international sales corporation is not required to report its taxable income to this state because its income is not derived from or attributable to sources within this state. If the domestic international sales corporation is subject to article 4 of this chapter, the department shall prescribe by rule the method of determining the portion of the commissions, rentals and other amounts which are paid or accrued to the controlled domestic international sales corporation and which shall be deducted by the payor. "Control" for purposes of this paragraph means direct or indirect ownership or control of fifty per cent or more of the voting stock of the domestic international sales corporation by the payor corporation.

6. Federal income tax refunds received during the taxable year to the extent they were deducted in arriving at Arizona taxable income in a previous year.

7. The amount of net operating loss taken pursuant to § 172 of the internal revenue code.

8. The amount of exploration expenses determined pursuant to § 617 of the internal revenue code to the extent that they exceed seventy-five thousand dollars and to the extent that the election is made to defer those expenses not in excess of seventy-five thousand dollars.

9. Amortization of costs incurred to install pollution control devices and deducted pursuant to the internal revenue code or the amount of deduction for depreciation taken pursuant to the internal revenue code on pollution control devices for which an election is made pursuant to § 43-1129.

10. The amount of depreciation or amortization of costs of child care facilities deducted pursuant to §§ 167 or 188 of the internal revenue code for which an election is made to amortize pursuant to § 43-1130 or for which a credit is taken under § 43-1163, subsection A, paragraph 1.

11. Arizona state income tax refunds received, to the extent the amount of the refunds is not already included in Arizona gross income, if a tax benefit was derived by deduction of this amount in a prior year.

12. The amount of depreciation or amortization of costs of recycling equipment deducted pursuant to the internal revenue code for which an election is made pursuant to § 43-1164.

13. The amount paid as taxes on property in this state by a qualified defense contractor with respect to which a credit is claimed under § 43-1166.

14. The loss of an insurance company that is exempt under § 43-1201 to the extent that it is included in computing Arizona gross income on a consolidated return pursuant to § 43-947.

15. Any amount of agricultural water conservation expenses that were deducted pursuant to the internal revenue code for which a credit is claimed under § 43-1172.

16. The amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken under § 43- 1169 exceeds the amount of depreciation or amortization computed pursuant to the internal revenue code on the Arizona adjusted basis of the property.

17. The amount by which the adjusted basis computed under the internal revenue code with respect to property for which a credit was claimed under § 43-1169 and which is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under § 43-1169.

18. The amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken under § 43- 1170 exceeds the amount depreciation or amortization computed pursuant to the internal revenue code on the Arizona adjusted basis of the property.

19. The amount by which the adjusted basis computed under the internal revenue code with respect to property for which a credit was claimed under § 43-1170 and which is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under § 43-1170.

20. The deduction referred to in § 1241(a)(4) of the internal revenue code for restoration of a substantial amount held under a claim of right.

21. The amount by which a capital loss carryover allowable pursuant to § 1341(b)(5) of the internal revenue code exceeds the capital loss carryover allowable pursuant to § 43-1130.01, subsection F.

22. Any amount deducted in computing Arizona taxable income as expenses for installing solar stub outs or electric vehicle recharge outlets in this state with respect to which a credit is claimed pursuant to section 43-1176.

23. Any wage expenses deducted pursuant to the internal revenue code for which a credit is claimed under section 43- 1175 and representing net increases in qualified employment positions for employment of temporary assistance for needy families recipients.

The additions cross-referenced in A.R.S. § 43-1121.1 (above) follow (§ 43-1021.4 to10, and 14):

4. The amount of interest income received on obligations of any state, territory or possession of the United States, or any political subdivision thereof, located outside the state of Arizona, reduced, for tax years beginning from and after December 31, 1996, by the amount of any interest on indebtedness and other related expenses that were incurred or continued to purchase or carry those obligations and that are not otherwise deducted or subtracted in arriving at Arizona gross income.

5. Annuity income received during the taxable year to the extent that the sum of the proceeds received from such annuity in all taxable years prior to and including the current taxable year exceeds the total consideration and premiums paid by the taxpayer. This paragraph applies only to those annuities with respect to which the first payment was received prior to December 31, 1978.

6. The excess of a partner’s share of partnership taxable income required to be included under chapter 14, article 2 of this title over the income required to be reported under § 702(a)(8) of the internal revenue code.

7. The excess of a partner’s share of partnership losses determined pursuant to § 702(a)(8) of the internal revenue code over the losses allowable under chapter 14, article 2 of this title (the partnership tax provisions, A.R.S. §§ 43-1411- 1413).

8. The amount by which the adjusted basis of property described in this paragraph and computed pursuant to the internal revenue code exceeds the adjusted basis of such property computed pursuant to this title and the income tax act of 1954, as amended. This paragraph shall apply to all property which is held for the production of income and which is sold or otherwise disposed of during the taxable year, except depreciable property used in a trade or business.

9. The amount of depreciation or amortization of costs of any capital investment that is deducted pursuant to § 167 or 179 of the internal revenue code by a qualified defense contractor with respect to which an election is made to amortize pursuant to § 43-1024.

10. The amount of gain from the sale or other disposition of a capital investment which a qualified defense contractor has elected to amortize pursuant to § 43-1024.

* * *

14. Any nonitemized amount deducted pursuant to § 170 of the internal revenue code representing contributions to an educational institution which denies admission, enrollment or board and room accommodations on the basis of race, color or ethnic background except those institutions primarily established for the education of American Indians.

2.6 Subtractions From Arizona Gross Income For Corporations.

A.R.S. § 43-1122 requires that the following items be subtracted from Arizona gross income:

1. The amounts computed pursuant to § 43-1022, paragraphs 8 through 15.

2. The amount of dividend income received from Arizona corporations as prescribed by § 43-1128.

3. The amount of Arizona capital loss carryover as defined in § 43-1124 in an amount not to exceed one thousand dollars.

4. With respect to a financial institution as defined in § 6-101, expenses and interest relating to tax-exempt income disallowed pursuant to § 265 of the internal revenue code.

5. Dividends received from another corporation owned or controlled directly or indirectly by a recipient corporation. "Control" for purposes of this paragraph means direct or indirect ownership or control of fifty per cent or more of the voting stock of the payor corporation by the recipient corporation. Dividends shall have the meaning provided in § 316 of the internal revenue code. This subtraction shall apply without regard to the provisions of § 43-961, paragraph 2 and article 4 of this chapter. A corporation that has its commercial domicile, as defined in § 43-1131, in this state may subtract the full amount of the dividends. A corporation that does not have its commercial domicile in this state may subtract:

(a) For its taxable year beginning in 1990, an amount equal to one-half of the dividends.

(b) For taxable years beginning in 1991 and thereafter, the full amount of the dividends.

6. Interest income received on obligations of the United States.

7. The amount of dividend income from foreign corporations.

8. The amount of net operating loss allowed by § 43- 1123.

9. The amount of any income tax refunds received from states other than Arizona which were included as income in computing federal taxable income.

10. The amount of expense recapture included in income pursuant to § 617 of the internal revenue code for mine exploration expenses.

11. The amount of deferred exploration expenses allowed by § 43-1127.

12. The amount of exploration expenses related to the exploration of oil, gas or geothermal resources, computed in the same manner and on the same basis as a deduction for mine exploration pursuant to § 617 of the internal revenue code. This computation is subject to the adjustments contained in § 43-1121, paragraph 8 and paragraphs 10 and 11 of this section relating to exploration expenses.

13. The amortization of pollution control devices allowed by § 43-1129.

14. The amount of amortization of the cost of child care facilities pursuant to § 43-1130.

15. The amount of income from a domestic international sales corporation required to be included in the income of its shareholders pursuant to § 995 of the internal revenue code.

16. The amount authorized by § 43-1128.01 for the taxable year for purchases of, and equipment relating to, alternative fuel vehicles.

17. The income of an insurance company that is exempt under § 43-1201 to the extent that it is included in computing Arizona gross income on a consolidated return pursuant to § 43-947.

18. The amount of contributions by the taxpayer during the taxable year to individual medical savings accounts established on behalf of the taxpayer’s employees pursuant to, and subject to the limitations prescribed by, § 43-1028, to the extent that the contributions are not deductible under the internal revenue code.

19. The amount by which a capital loss carryover allowable pursuant to § 43-1130.01, subsection F exceeds the capital loss carryover allowable pursuant to § 1341(b)(5) of the internal revenue code.

* * *

The subtractions cross-referenced in A.R.S. § 43-1122.1 (above) follow (§ 43-1022.8 to 15):

8. Annuity income included in federal adjusted gross income pursuant to § 72 of the internal revenue code if the first payment with respect to such annuity was received prior to December 31, 1978.

9. The excess of a partner’s share of income required to be included under § 702(a)(8) of the internal revenue code over the income required to be included under chapter 14, article 2 of this title.

10. The excess of a partner’s share of partnership losses determined pursuant to chapter 14, article 2 of this title over the losses allowable under § 702(a)(8) of the internal revenue code.

11. The amount by which the adjusted basis of property described in this paragraph and computed pursuant to this title and the income tax act of 1954, as amended, exceeds the adjusted basis of such property computed pursuant to the internal revenue code. This paragraph shall apply to all property which is held for the production of income and which is sold or otherwise disposed of during the taxable year other than depreciable property used in a trade or business.

12. The amount allowed by § 43-1024 for amortization, by a qualified defense contractor certified by the department of commerce under § 41-1508, of a capital investment for private commercial activities.

13. The amount of gain included in federal adjusted gross income on the sale or other disposition of a capital investment that a qualified defense contractor has elected to amortize pursuant to § 43-1024.

14. The amount allowed by § 43-1025 for contributions during the taxable year of agricultural crops to charitable organizations.

15. The portion of any wages or salaries paid or incurred by the taxpayer for the taxable year that is equal to the amount of the federal work opportunity credit, the empowerment zone employment credit, the credit for employer paid social security taxes on employee cash tips and the Indian employment credit that the taxpayer received under sections 45A, 45B, 51(a) and 1396 of the internal revenue code.

2.7 Other Adjustments.

After the additions and subtractions listed above, A.R.S. § 43-1101.2 requires that Arizona gross income be adjusted by the modifications specified in A.R.S. §§ 43-1123 through 43-1130.01. They are:

(1) 43-1123. Net operating loss (five-year carryover for NOLs).

(2) 43-1124. Arizona capital loss carryover existing at the beginning of the taxable year for tax years beginning prior to January 1, 1988.

(3) 43-1125. Domestic international sales corporation (a DISC is taxed as a regular corporation without regard to the provisions of § 991 through 996 of the internal revenue code).

(4) 43-1126. Small business corporation (an "S" corporation is not subject to corporate income taxation but only to the extent that such a corporation is not subject to federal income taxes).

(5) 43-1127. Deferred exploration expenses (the amount of exploration expenses added pursuant to § 43-1121.8 may be subtracted on a ratable basis as the units of produced ores or minerals discovered or explored are sold).

(6) 43-1128. Subtraction for dividends received from Arizona corporations.

(7) 43-1128.01. Subtraction for alternative fuel vehicles and equipment.

(8) 43-1129. Amortization of expenses incurred in acquisition of pollution control devices.

(9) 43-1130. Amortization of the cost of child care facilities.

(10) 43-1130.01. Restoration of a substantial amount held under claim of right.

2.8 Arizona Taxable Income.

After making the additions of A.R.S. § 43-1121, the subtractions of A.R.S. § 43-1122, and the other adjustments of A.R.S. § 43-1123 through 1130.01, the result is Arizona taxable income. See A.R.S. § 43-1101.2.

2.9 Corporate Income Tax Rates and Minimum Tax (A.R.S. § 43- 1111).

Effective for tax years beginning from and after December 31, 1999, A.R.S. § 43-1111 provides for a flat rate tax of 7.968% or $50, whichever is greater. However, the minimum tax is imposed on an S corporation when the S corporation itself is subject to tax, and on a tax exempt organization which has unrelated business income.

Corporate Income Tax Rate Reduction. The corporate income tax rate was reduced from 9% to 8% effective for tax years beginning from and after December 31, 1997. In conjunction with the rate reduction, the deduction for Arizona corporate income taxes paid was repealed, which makes the effective rate reduction only 0.25%. The deduction for state income taxes paid had effectively decreased the liability for corporations by 0.75%. Additionally, as a part of the corporate tax rate reduction, the throw back provision of the sales factor for sales made to the United States government and to non-taxable states and countries was repealed. See Tax Relief Act of 1998, Laws 1998, 4 Special Session, ch. 3.

For the 2001 tax year (tax years beginning from and after December 31, 2000), the rate is reduced to 7%.

2.10 Alternative Tax For Capital Gains Repealed Effective For Tax Years Ending On Or After 7/1/88.

Effective January 22, 1986, Arizona implemented an alternative tax for corporations with net capital gains. For a corporation having a net capital gain the alternative tax will be imposed if it is less than the tax computed using the rates indicated above. The alternative tax consists of the sum of:

(1) The tax on Arizona taxable income reduced by the amount of the net capital gain at the rates indicated above; and

(2) The tax on the amount of net capital gain at the rate of 6.4% of such amount.

Repeal. The preferential tax rate on corporate capital gains was repealed, effective for tax years ending on or after July 1, 1988, by S.B. 1261.

2.11 Dividends from Controlled Domestic Corporations.

The subtraction for dividend income received from controlled domestic corporations was formerly allowed only if the recipient corporation had its commercial domicile within Arizona. The statute (A.R.S. § 43-1122.5) has been amended to allow the subtraction as follows:

5. Dividends received from another corporation owned or controlled directly or indirectly by a recipient corporation. "Control" for purposes of this paragraph means direct or indirect ownership or control of fifty percent or more of the voting stock of the payor corporation by the recipient corporation. Dividends shall have the meaning provided in section 316 of the internal revenue code. This subtraction shall apply without regard to the provisions of section 43-961, paragraph 2 and article 4 of this chapter. A corporation that has its commercial domicile, as defined in section 43-1131, in this state may subtract the full amount of the dividends. A corporation that does not have it commercial domicile in this state may subtract:

(a) For its taxable year beginning in 1990, an amount equal to one-half of the dividends.

(b) For taxable years beginning in 1991 and thereafter, the full amount of the dividends.

2.12 Subtraction For Dividends Received From Arizona Corporations.

A.R.S. § 43-1128 provides a subtraction for dividends received from an Arizona corporation, computed as follows:

A. In computing Arizona taxable income, there shall be allowed a subtraction from Arizona gross income for dividends received from a corporation the income of which is subject to taxation under this title, which corporation has filed a report of income as required by this title and the principal business of which is attributable to Arizona. For the purpose of this section, the principal business of a corporation shall be considered attributable to Arizona if fifty per cent or more of the entire taxable income or loss of the corporation, after an adjustment for taxes has been made for the year preceding the payment of such dividends, was used in computing the Arizona taxable income provided by this title.

B. This section does not apply to a dividend received from a business trust which qualifies as a "real estate investment trust" under §§ 856, 857 and 858 of the United States Internal Revenue Code and which is entitled to a deduction under § 857(b) of the Internal Revenue Code.

This subtraction used to apply also to individual recipients, but for 1990 and thereafter it applies only to corporate recipients.

2.13 Income Tax Credits.

The Arizona individual and corporate income tax is "piggy-backed" on the federal income tax. As such, a convenient way for the Arizona Legislature to provide income tax incentives is by the way of state tax credits, rather than through deductions. Following is an overview of the corporate income tax credits currently in place in Arizona.

(1) Credit for Increased Employment in Enterprise Zones. Credit for increased employment by a business located in an enterprise zone. A.R.S. § 43-1161.

(2) Credit for Investment or Employment on Grounds of Correctional Facilities. Credit for the investment in certain types of property or the employment of inmates on the grounds of a correctional facility. A.R.S. § 43-1162; repealed effective January 1, 2000.

(3) Credit for Dependent Day Care Facilities. Credit for expenses for providing dependent care services for employees. A.R.S. § 43- 1163; repealed effective January 1, 2000.

(4) Recycling Equipment Tax Credit. Credit for placing recycling equipment in service. A.R.S. § 43-1164; repealed effective January 1, 2000.

(5) Credit for Employment by Qualified Defense Contractor. Credit for increases in private commercial employment by a defense contractor pursuant to a Department of Defense contract. A.R.S. § 43-1165.

(6) Credit for Property Taxes Paid by a Qualified Defense Contractor. Credit for income taxes equal to a portion of the amount paid as property taxes by a qualified defense contractor. A.R.S. § 43-1166.

(7) Credit for Increased Employment in Military Reuse Zones. Credit for taxes for net increases in employment of full time employees working in the military reuse zone who are primarily engaged in providing aviation or aerospace services or in the manufacturing of aviation or aerospace products. A.R.S. § 43-1167.

(8) Research and Development Expenses. Credit for research and development expenses allowed by I.R.C. § 41, with certain limitations (the limitations are being phased out). A.R.S. § 43-1168. The credit also applies to pass-through entities.

(9) Credit for Construction Costs of Qualified Environmental Technology Facilities. Credit for expenses incurred in constructing facilities that manufacture, produce or process solar and other renewable energy products or products from recycled materials. A.R.S. § 43- 1169.

(10) Credit for Pollution Control Equipment. Credit for 10% of the purchase price of real or personal property that is used to control or prevent pollution. A.R.S. § 43-1170.

(11) Credit for Agricultural Pollution Control Equipment. Credit for expenses for pollution equipment used in the commercial production of livestock, livestock products or agricultural, horticultural, viticultural or floricultural crops or products. The credit is equal to 25% of the cost of the pollution control equipment, with a cap of $25,000 per year. A.R.S. § 43- 1170.01. This credit applies to taxable years beginning January 1, 1999.

(12) Credit for Construction Materials Incorporated into Qualifying Facility. Credit for construction materials incorporated into buildings or structures predominantly used for manufacturing, fabricating, mining, refining or metallurgical operations, or research and development as defined in A.R.S. § 43-1168, above. A.R.S. § 43-1171; repealed effective January 1, 2000.

(13) Credit for Agricultural Water Conservation System. Credit for water conservation system designed to conserve water on the taxpayer’s land used to produce agricultural products, raise, harvest or grow trees or sustain livestock. A.R.S. § 43-1172; repealed effective January 1, 2000.

(14) Credit for Corrective Action Costs for Underground Storage Tanks. Credit for expenses incurred by a taxpayer that is not liable or responsible for correcting underground storage tanks. A.R.S. § 43-1173.

(15) Credit for New Alternative Fuel Vehicles and Equipment. Credit for purchases of alternative fuel vehicles or expenses for converting conventional vehicles into alternative fuel vehicles or purchases of alternative fuel delivery systems, including storage tanks. This credit is in lieu of the subtraction at A.R.S. § 43-1128.01, allowing a subtraction for essentially the same types of equipment. A.R.S. § 43-1174. This credit applies to taxable years beginning January 1, 1999.

(16) Credit for Vehicle Refueling Apparatus for Electric and Natural Gas Operated Vehicles. Credit for the purchase of vehicle refueling apparatus for electric or natural gas operated vehicles, including storage tanks, for installation on one or more properties located in Arizona for the taxpayer’s use. A.R.S. § 43-1174.01. This credit applies to taxable years beginning January 1, 1999.

(17) Credit for Alternative Fuel Delivery Systems. Credit for costs of constructing or operating an alternative fuel delivery system in Arizona that is capable of dispensing an alternative fuel (electricity or natural gas) to an alternative fuel vehicle. A.R.S. § 43-1174.02. This credit applies to taxable years beginning January 1, 1998.

(18) Credit for Employment of Temporary Assistance for Needy Families Recipients. Credit for net increases in qualified employment for recipients of the temporary assistance for needy families as defined in § 46-101 who are residents of Arizona. A.R.S. § 43-1175. This credit is effective for years beginning January 1, 1998.

(19) Credit for Solar Hot Water Heater Plumbing Stub Outs and Electric Vehicle Recharge Outlets Installed in Houses Constructed by Taxpayer. Credit for costs incurred for installing or including in one or more houses or dwelling units located in Arizona and constructed by the taxpayer one or more solar hot water plumbing stub outs and electric vehicle recharge outlets. The contractor may elect to transfer this credit to a purchaser or transferee of the house or dwelling unit. A.R.S. § 43-1176. This credit applies to taxable years beginning January 1, 1998.

(20) Credit for Donation of Motor Vehicle to Wheels to Work Program. The credit is for the fair market value of a vehicle, up to $1,500 per vehicle, donated to the "Wheels to Work" program. The credits are in lieu of any deduction allowed pursuant to § 170 of the Internal Revenue Code and taken for state tax purposes. A.R.S. § 43-1177. This credit applies to taxable years beginning January 1, 1999.

(21) Credit for Transaction Privilege Taxes Paid on Purchase of Coal Used in Generating Electricity. Credit for a taxpayer that purchases coal consumed in generating electrical power. The credit is equal to 35% of the amount of the transaction privilege tax or use tax paid with respect to the purchase of the coal. The credit may be carried forward for 5 consecutive years and is in lieu of any deduction for state tax purposes for expenses allowed by the Internal Revenue Code. A.R.S. § 43-1178. This credit applies retroactively to taxable years beginning January 1, 1998. 

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To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions