Bill > HB2660

This bill extends and modifies Arizona's affordable housing tax credit program by making several key changes. From calendar years 2022 through 2025, the Arizona Department of Housing will continue to allocate $4,000,000 in tax credits annually, but for calendar years 2026 through 2030, the allocation increases to $10,000,000, with credits allocated in 2026 not being claimable until the federal fiscal year beginning October 1, 2027. The bill removes the previous requirement that tax credits be "at least fifty percent" of federal low-income housing credits, instead allowing the department to determine the credit amount based on the economic feasibility of each qualified project. The legislation extends the sunset date for these tax credit provisions from December 31, 2025, to December 31, 2030, ensuring continued support for affordable housing development. Taxpayers can still claim these credits against premium, income, or other applicable tax liabilities, with the ability to carry forward unused credits for up to five consecutive years. The bill maintains existing provisions for credit allocation among project partners and the potential for credit recapture if federal low-income housing tax credits are subject to recapture during the first ten years after a project is placed in service.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/82492