SB1327 Summary

• Establishes a state affordable housing tax credit equal to at least 50% of the federal low-income housing credit for qualified projects placed in service after June 30, 2022

• Allocates $8,000,000 annually in tax credits administered by the Arizona Department of Housing, with unused balances rolling over to subsequent years

• Allows taxpayers to claim credits against insurance premium tax (section 20-224.04) and income tax liability (sections 43-1075 and 43-1163), with unused credits carried forward up to five consecutive years

• Credits are subject to recapture in proportion to any recapture of federal low-income housing credits within the first ten years after project placement in service

• Creates the Affordable Housing Tax Credit Review Committee to review the credit program every five years, with the entire program set to expire December 31, 2027