SB 1124 Summary

• Establishes an affordable housing tax credit program allowing taxpayers to claim credits equal to at least 50% of the federal low-income housing tax credit for qualified projects placed in service after June 30, 2022.

• Creates the Arizona Department of Housing as administrator to allocate $4,000,000 in annual tax credits according to a qualified allocation plan, with credits available against insurance premium taxes and corporate/individual income taxes.

• Extends the capital investment incentive tax credit program through June 30, 2031 (previously expiring June 30, 2021) with annual certification limits of $2,500,000 plus unused capacity from prior years.

• Allows credits to be carried forward for up to five consecutive years if they exceed current tax liability, with federal low-income housing credit recapture provisions applying proportionally to all taxpayers claiming the state credit.

• Adds a corporate income tax subtraction for public service corporations receiving contributions in aid of construction for water systems or sewage disposal facilities, effective retroactively to January 1, 2021.