Arizona DOR Publishes Income Tax Information on Pass-Through Entity Election

The Arizona Department of Revenue Feb. 1 published information regarding the Pass-Through Entity (PTE) election for individual income and corporate income tax purposes. The information includes: 1) for tax years beginning on and after Dec. 31, 2021, the partners or shareholders of a business that is treated as a partnership or S corporation at the federal level may consent to have its pass-through income taxed at the entity level in Arizona; 2) for tax year 2022, the PTE tax rate is 2.98 percent; 3) tax credits that are not used to offset taxes may be carried forward for not more ...