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WATCH: What to Expect from the Arizona Legislature in 2026

WATCH: What to Expect from the Arizona Legislature in 2026

February 2, 2026

Tax conformity, easing healthcare costs, and eliminating swipe fees on sales tax are among the top priorities of Arizona small business owners

The Arizona Legislature convened on January 12, 2026. NFIB State Director Chad Heinrich held a virtual event to preview what small business owners can expect from this legislative session and NFIB’s top priorities.
“NFIB is your voice of small business in Washington, D.C. and in every state capitol. As the state director for Arizona, I’m your boots on the ground lobbyist and advocate for NFIB here in Phoenix,” Heinrich said. “Keep an eye on your inbox, where you’ll see several action alerts come through as bills make their way through the process.”
Heinrich continued, encouraging small business owner members to find their legislator for their residence and for their business location, and talk about the issues that matter most to them.
The full event may be viewed HERE and below.
Arizona Small Business Priorities
Say Yes to Arizona Tax Conformity
If the state does not update its tax code to match federal law, small businesses could face higher taxes, more paperwork, and fewer resources to invest in their businesses. Conformity with the federal tax changes helps business owners invest in their operations, hire employees, and plan ahead. Conformity also simplifies the tax filing process for Arizona taxpayers.
NFIB Arizona is working with lawmakers to align the state tax code with the federal tax reforms passed in 2025.
CLICK HERE to tell your state lawmakers to stand with small businesses and support tax conformity.
Address the Rising Cost of Healthcare
For decades, small business owners have identified the cost of health insurance as their number one business problem.
NFIB is monitoring a bill that would provide small employers (those with 2 to 50 employees) a nonrefundable state income tax credit of $400 per employee if they contribute at least $400 annually to an individual coverage health reimbursement arrangement (ICHRA) for their employees’ health insurance.
Eliminate Credit Card Swipe Fees on Taxes
Swipe fees remain a serious challenge for small business owners. In fact, in 2023, Arizona businesses and consumers paid more than $217 million in interchange fees annually to out-of-state banks just to carry out their role in collecting taxes on behalf of state and local governments.
Rep. Khyl Powell has introduced a bill that would limit the application of that swipe fee to only the goods or the services small businesses offer and exempt the sales tax merchants collect on behalf of state and local governments. NFIB supports the bill.
 
Make your voice heard! Direct advocacy in Phoenix, along with the help of our members who actively reach out and voice their concerns with lawmakers, makes a big difference! Have questions or want to get more involved? Reach out to your Grassroots Manager, Kylie Barber.
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