B. Except as provided by subsection C of this section, if, in any three consecutive reports under subsection A of this section, an individual or corporate income tax credit was not claimed by or allowed to any individual or corporate taxpayer, the director of the department of revenue shall:

1. 1. Terminate the recognition and servicing of that credit for taxable years beginning from and after December 31 of the year in which the third report is issued.
2. 2. Issue a public announcement, including on the department's website, of the termination of the credit under authority of this section.
3. 3. Notify the governor's office of strategic planning and budgeting, the president of the senate, the speaker of the house of representatives, the joint legislative budget committee and the legislative council.
4. 4. Include the repeal of all statutes relating to the terminated credit in technical tax correction legislation for enactment in the next regular session of the legislature. If the credit included for repeal in the technical tax correction legislation has unused credits carried forward from prior years, the technical tax correction legislation shall include a saving clause to allow for the continued use of the carried forward amounts for the remainder of the carryforward period specified in the repealed credit. If the legislature fails to enact this legislation, the director shall rescind the termination of the credit.

C. The director may not terminate under subsection B of this section the recognition and servicing of any income tax credit that is subject by law to preapproval by the Arizona commerce authority unless over any period of three consecutive calendar years both of the following conditions occur with respect to the credit:

1. 1. The department has not received notice of preapproval of any applicant or project for the credit from the Arizona commerce authority.
2. 2. In the report issued under subsection A of this section, the credit was not claimed by or allowed to any taxpayer.