AZ SB1602

Establishes an affordable housing tax credit administered by the Arizona Department of Housing for projects qualifying for the federal low-income housing tax credit under Internal Revenue Code Section 42.

Allocates $4,000,000 in total tax credits per calendar year, with unused balances reallocated to the following year.

Prohibits qualified projects approved for this credit from receiving any abatement, exemption, or other reduction in state or local ad valorem property taxes, except for valuations under Title 42, Chapter 13, Article 13.

Requires the Department of Housing to hold an annual public hearing by July 30 to solicit comments on tax-exempt bond-financed projects and other affordable housing tax credit issues.

Mandates an annual report by December 31 to the legislature analyzing whether the credits produced significant affordable housing units and assessing the economic impact on Arizona.