The proposed bill would update the Arizona Revised Statutes by introducing a new Rural Development and Housing Tax Credit, specifically designed for projects in counties with populations under 800,000 that qualify for the federal low-income housing tax credit. This new credit, outlined in 20-224.04, 41-3954, 43-1075, and 43-1163, would be available for the first six taxable years of the federal credit period, with an annual allocation of $2,000,000 from 2026 to 2036. Taxpayers would be able to claim this credit against their premium tax liability, individual income tax, or corporate income tax, contingent upon receiving an eligibility statement from the Arizona Department of Housing (ADOH). The bill also establishes a process for reallocating unused credits and mandates ADOH to hold public hearings and report on the credits' effectiveness. Additionally, the bill would repeal existing sections 20-224.04, 41-3954, 43-1075, and 43-1163 after December 31, 2036, while ensuring that previously issued credits remain unaffected. The legislation is retroactive to taxable years beginning January 1, 2026, and aims to enhance the economic feasibility of affordable housing projects in rural areas, requiring the Department of Revenue and the Department of Insurance and Financial Institutions to adopt necessary rules for implementation.

Statutes affected:
Introduced Version: 20-224.04, 41-3954, 43-222, 43-1075, 43-1163, 20-224, 20-837, 20-1010, 20-1060, 20-1097.07, 20-230, 43-105, 43-1079.01, 43-1088, 43-1089.04, 43-1167.01, 43-1175, 43-1072.02, 43-1074.02, 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