The bill SB1241 introduces a new tax credit for Arizona taxpayers who incur expenses for purchasing and installing residential gray water treatment systems. This credit is applicable for taxable years 2024 through 2035. The credit amount is 50% of the cost of the system, capped at $5,000 per system. Taxpayers must submit a form for certification to be eligible for the credit, and the Arizona Department of Revenue (ADOR) will certify credits on a first-come, first-served basis, with a total annual limit of $25 million in credits. Unused credit amounts can be carried forward for up to two consecutive taxable years.

The bill also defines a "residential gray water treatment system" as one that meets Standard 350 for residential gray water recycling, issued by a national sanitary foundation and an American national standards institute, and complies with certain statutory requirements. The legislation aims to promote the use of residential gray water treatment systems in Arizona.

Statutes affected:
Introduced Version: 43-222, 43-1080, 43-1169, 43-1079.01, 43-1088, 43-1089.04, 43-1167.01, 43-1175, 43-1072.02, 43-1074.02, 43-1075, 43-1076.01, 43-1077, 43-1078, 43-1083, 43-1083.02, 43-1162, 43-1164.03, 43-1183, 43-1073, 43-1082, 43-1085, 43-1086, 43-1089, 43-1089.01, 43-1089.02, 43-1089.03, 43-1164, 43-1165, 43-1181, 43-1074.01, 43-1168, 43-1170, 43-1178, 43-1073.01, 43-1081.01, 43-1083.03, 43-1084, 43-1164.04, 43-1164.05, 43-1184, 49-204