income tax credit; family support

Arizona's HB 2004 creates a new "Family Support Tax Credit" for eligible residents with children. It provides up to $4,000 per qualifying child for married couples filing jointly (or $2,000 for single filers) when claiming the credit, with an additional $4,000 (or $2,000) if the parent completed a parenting course during pregnancy. The credit amount phases out for households earning more than 115% of the federal poverty level, reducing to 50% for incomes between 115%-130% of the poverty level. This credit applies to Arizona tax returns filed by legal residents meeting income thresholds, effective for taxable years beginning after December 31, 2025.