Gov. Brewer signs bill that factors inflation into income tax brackets - East Valley Tribune: Politics

Gov. Brewer signs bill that factors inflation into income tax brackets

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Posted: Saturday, April 12, 2014 6:15 am

Some Arizona taxpayers who get a raise this year could get some tax relief next April.

And one large company – maybe two – might be in line for millions in tax credits.

Without comment Gov. Jan Brewer signed legislation Friday which requires the Department of Revenue to adjust its individual income tax brackets next year to account for inflation.

Arizona tax rates in five brackets, based on amount of income. Earnings below $50,000, one of the break points, are taxed at a lower rate than earnings above that.

This law requires a one-time inflationary adjustment, so a 2 percent inflation rate would move that break point between the tax rates to $51,000.

Brewer also signed a measure designed to give up to a $5 million state income tax credit apparently designed for Apple.

The new law makes the credit available to any company that spends at least $300 million to produce power for its own use from renewable resources. Legislative proponents said that change helped secure a commitment from Apple to locate a new factory in Mesa to make sapphire crystals for its fingerprint touch sensor for one of its iPhone models.

But the law also might become an incentive to lure Tesla Motors to the state.

That firm is looking at Arizona and three other states to locate a factor to produce batteries for electric vehicles. And the company plans to generate most of its own power.

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