HB2562 Summary

• Establishes an affordable housing tax credit program administered by the Arizona Department of Housing, allocating $8,000,000 annually to projects qualifying for federal low-income housing tax credits placed in service after June 30, 2022.

• Creates three separate tax credit mechanisms allowing taxpayers to claim credits equal to at least 50% of the federal low-income housing credit: one against insurance premium taxes (§20-224.04), one against corporate income taxes (§43-1075), and one against partnership/S-corp taxes (§43-1163).

• Allows credits to be allocated among partners, members, or shareholders by agreement and permits unused credits to be carried forward for up to five consecutive taxable years.

• Establishes a nine-member Affordable Housing Tax Credit Review Committee to review the credit program beginning five years after the effective date and every five years thereafter, with committee termination scheduled for July 1, 2029.

• Sunsets the entire affordable housing tax credit program on December 31, 2027, but preserves credits already reserved or issued before that date and allows taxpayers to continue redeeming such credits under established rules.