AZ SB1235

Extends the expiration date for residential water conservation system tax credits from January 1, 2012 to January 1, 2017, allowing homeowners to continue claiming credits for rainwater and graywater collection systems.

Extends the expiration date for commercial water conservation system plumbing stub out tax credits from January 1, 2012 to January 1, 2017, allowing builders to claim credits for graywater plumbing stub outs in newly constructed houses.

Maintains the $250,000 annual cap on residential water conservation credits and the $500,000 annual cap on commercial plumbing stub out credits, with credits distributed on a first-come, first-served basis.

Applies the extension retroactively to taxable years beginning on or after December 31, 2011, allowing taxpayers to claim extended credits for systems installed during the 2011-2016 period.