AZ HB2365

Establishes an affordable housing tax credit program allowing taxpayers who invest in qualified low-income housing projects to claim a state tax credit equal to the federal low-income housing tax credit amount.

Creates a $12,000,000 annual cap on tax credits allocated by the Arizona Department of Housing, with no more than 20% of credits awarded to projects financed through tax-exempt bonds, with unused balances carried forward to the following year.

Allows credits to be claimed against insurance premium taxes (insurers), individual income taxes, and corporate income taxes; credits may be allocated among partners, members, or shareholders and carried forward up to five consecutive years if not fully used.

Requires applicants to obtain an eligibility statement from the Arizona Department of Housing and submit it with their tax return; qualified projects become ineligible for other state and local ad valorem property tax abatements or exemptions.

Makes the state tax credit subject to recapture in proportion to any federal low-income housing tax credit recapture during the first ten years after the project is placed in service, effective December 31, 2019.