Bill > HB2075

This bill amends Arizona's transaction privilege tax (TPT) law regarding prime contracting, specifically focusing on tax provisions for senior housing construction. The key change involves modifying the qualification criteria for tax deductions related to residential apartment housing facilities for low-income seniors aged 62 and older. The bill expands the types of nonprofit organizations that can qualify for these tax deductions, now including nonprofit corporations recognized as tax-exempt under specific IRS code sections (501(c)(3) or 501(c)(4)), as well as limited partnerships or limited liability companies with nonprofit corporations as general partners or managing members. The bill also clarifies the definition of "federal housing subsidy" to include specific housing programs like the HUD Section 202 Supportive Housing for the Elderly Program and the low-income housing tax credit program. The tax deduction applies to gross proceeds from contracts for constructing such housing facilities. Importantly, the bill is retroactively applied to taxable periods beginning after December 31, 2023, meaning it will affect tax calculations for those periods. This change aims to provide more flexibility and broader tax benefits for nonprofit organizations developing senior affordable housing.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/81741