AZ SB1177

Creates a healthy forest production tax credit for taxable years beginning after December 31, 2021 and before January 1, 2032 for taxpayers processing qualifying forest products in Arizona.

Tax credit amount is $10,000 for the first 20,000 tons and $5,000 for every 10,000 tons thereafter of qualifying forest products processed annually, with a maximum of $500,000 per taxpayer per calendar year.

Taxpayers must have current healthy forest enterprise incentive certification with the Arizona Commerce Authority and process products at an in-state facility to be eligible for the credit.

Credits are awarded on a first-come, first-served basis with an aggregate annual cap of $2,000,000 across all taxpayers; unused credits may be carried forward for up to five consecutive taxable years.

Adds the new credit to the joint legislative income tax credit review committee's schedule for review in years ending in 1 and 6, applying to both individual income tax and corporate income tax.