HB 2568 Summary

• Establishes an affordable housing tax credit allowing taxpayers to claim credits against premium tax (insurers) and income tax (corporate and individual) for qualified low-income housing projects that receive federal low-income housing tax credits.

• Arizona Department of Housing administers the program and allocates state tax credits up to $10 million per calendar year to projects placed in service after June 30, 2019, matching the amount of federal credits allowed.

• Taxpayers must submit an eligibility statement from the Arizona Department of Housing with their tax returns to claim credits; unused credits may be carried forward up to 5 consecutive taxable years.

• Credits are subject to recapture proportionally if federal low-income housing tax credits are recaptured during the first ten years after project placement in service.

• Qualified projects approved for this credit become ineligible for other state or local property tax abatements, exemptions, or reductions.