corporate income tax rate; reduction

HB 2421 reduces Arizona's corporate income tax rate from 4.9% to 2% for tax years beginning after December 31, 2025. It directly affects corporations operating in Arizona that pay state corporate income tax (excluding those exempt under specific statutes). The bill replaces the current 4.9% rate, which has applied since 2016, with a lower 2% rate for all future taxable income. The bill is currently in the Arizona House for further consideration.