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Arizona Republican Spending Plan Includes $26 Million In Tax Breaks

The new Republican spending plan includes $26 million in tax breaks. But most of it will be off limits to the average Arizonan.

The biggest break involves a law that now allows businesses to immediately write off on their taxes up to $25,000 a year for new equipment. The proposal would boost that deduction from taxes to half a million dollars-- a benefit only for businesses that buy that much in a year.

Another exempts manufacturers from sales taxes on their electricity that everyone else pays.

Senate Majority Leader Steve Yarbough said it will end up helping everyone-- "There is a benefit that accrues to us regular folks, too, as that process works through. In other words, if the manufacturer is having to pay less for its electricity, I think there is ultimately a benefit that accrues to all of us."

There is one tax change that could affect people filing at much lower income levels. Current law provides a dollar-for-dollar state tax credit, up to $200 for individuals and $400 for couples, for donations to organizations that do charity work for the needy. The new budget doubles both those amounts.