The Arizona House of Representatives approved a tax break Monday to help reduce the tax bills for the University of Phoenix and other multistate businesses based in Arizona.
The House unanimously approved Senate Bill 1552, which had the backing of UOP’s parent company, the Apollo Group (Nasdaq:APOL). The bill would allow businesses to opt for a new formula to calculate their corporate income tax and pay less Arizona tax on services provided outside the state. That will help Phoenix-based Apollo, which offers classes and services at numerous campuses across the country.
Apollo hired a number of lobbyists to help usher the bill through the process. A tax calculation option was added to the bill, which would allow other companies — such as Cox Communications Inc. and AT&T Inc. — to continue to determine their tax bills under the old formula.
The new tax formula would allow Apollo and other multistate service companies to file taxes under some of the same formulas used by manufacturers including Intel Corp. (Nasdaq:INTC).
The tax bill now will move to Gov. Jan Brewer.