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 sections 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 in tax credits from 2026 to 2036. The bill also establishes rules for claiming the credit against insurance premium or income tax liabilities, allows for the carryforward of unused credits for up to five years, and mandates public hearings and reports on the effectiveness of the credits. Additionally, the bill includes a repeal of the tax credit provisions after December 31, 2036, while ensuring that previously issued credits remain unaffected. The legislation is retroactive to taxable years beginning January 1, 2027, thereby supporting the construction of new affordable housing projects in rural areas. Overall, these updates aim to enhance the state's ability to incentivize affordable housing development through targeted tax credits.

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
House Engrossed 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