Arizona’s new tax-cut legislation impacts businesses

The legal field is constantly changing and growing as more laws and regulations are instituted by local, state and federal governments. SMBs may have a variety of regulations to follow and some of these may be changing on a regular basis. To avoid making pitfalls, a business owner may want to contact small business attorneys to make sure he or she meets all local and state requirements.

In Arizona, new capital-gains tax cuts have caused some controversy, as wealthy Arizona residents seem to gain greater benefit from this legislation, according to Arizona Central. However, business owners may win out, as a number of tax breaks were also instituted for businesses.

In early May, Governor Jan Brewer signed these tax cuts into law, which should save citizens $108 million annually. Businesses have gained a boost from this new legislation, as business owners gained a 15-year extension from when they can carry forward a net-operating loss, which is now set at 20 years.

Also, SMBs will receive an income-tax credit for capital investment in manufacturing companies, research organizations or commercial headquarters. Business owners are advised to address changed exemption for the business personal property tax in order to avoid any potential mistakes in their company's practices.

However, E.J. Montini's article for the news source explains that a number of women will have their healthcare options reduced through this new legislation and many families may face foreclosure.

"Distressed Arizona homeowners were set to receive assistance and legal aid as part of a mortgage settlement that brought $97.7 million to the Arizona Attorney General's Office," Montini wrote for Arizona Central. "The governor and Republican legislators decided to 'sweep' $50 million from that settlement money and put it into the general fund."

Businesses in Phoenix that have a number of new regulations to follow may need to consult with a business lawyer who has real-world corporate experience.

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