SB 1394 Summary

• Establishes an affordable housing tax credit program allowing taxpayers to claim credits equal to at least 50% of federal low-income housing tax credits for qualified projects placed in service after June 30, 2021.

• Allocates $8,000,000 annually in state tax credits through the Arizona Department of Housing, with credits available against premium taxes, corporate income taxes, and individual income taxes.

• Creates an affordable housing tax credit review committee to evaluate the credit program's effectiveness, including housing units generated and average resident income, with reviews due every five years starting five years after the credit's effective date.

• Diverts unclaimed property revenues: removes the $2,500,000 annual deposit to the housing trust fund and instead allocates 55% of abandoned property sale proceeds to the housing trust fund for affordable housing development.

• Establishes a sunset date of December 31, 2027 for the tax credit program, though previously allocated credits may continue to be claimed and redeemed after that date.