HB 2416 Summary

• Amends Arizona Revised Statutes section 42-5075 to expand the transaction privilege tax (TPT) exemption for prime contracting on residential apartment housing facilities for seniors.

• Modifies the ownership requirement to allow qualifying senior housing to be owned by nonprofit corporations recognized as tax-exempt under Section 501(c)(3) or 501(c)(4) of the Internal Revenue Code, or wholly-owned subsidiaries, limited partnerships, limited liability companies, or single-purpose entities controlled by such nonprofits.

• Maintains the existing requirements that senior housing must qualify for federal housing subsidies and serve residents age 62 and older to be eligible for the TPT deduction.

• Applies retroactively to taxable periods beginning January 1, 2024 and later.