AZ SB1301

Establishes a 39% tax credit for qualified equity investments made to qualified community development entities, with credits applied against income tax, corporate tax, and premium tax liability.

Credits are distributed over seven years on "credit allowance dates" with 0% allowed in years one and two, 7% in year three, and 8% in years four through seven.

Requires qualified community development entities to invest at least 85% of purchase price in qualified Arizona businesses within twelve months and maintain that threshold through the seventh anniversary, with a six-month cure period for noncompliance.

Limits annual tax credit certifications to $20 million per fiscal year and includes a $5,000 application fee to be deposited in the Arizona commerce authority fund.

Allows unused tax credits to carry forward for five years against premium tax liability or three years against income tax liability, and permits transfer of credits among pass-through entity partners with authority notification.