SB 1602 Summary

• Establishes a healthy forest production tax credit for taxpayers processing qualifying forest products from qualifying projects between January 1, 2022 and December 31, 2030.

• Credits are $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.

• Total credits authorized statewide may not exceed $2,000,000 per calendar year, allocated on a first-come, first-served basis.

• 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; unused credits may be carried forward for up to five consecutive taxable years.

• Credit applications are accepted January 2-31 each year for the prior calendar year's processing, with the department establishing a credit authorization list based on application order.