AZ HB2804

Establishes a rural development and housing tax credit for affordable housing projects in Arizona counties with populations under 800,000 that qualify for the federal low-income housing tax credit.

Allocates $2,000,000 in total tax credits annually from 2026 through 2036, with credits available for the first six taxable years during the federal credit period for projects placed in service after June 30, 2027.

Allows the credit to be applied against insurance premium taxes or individual/corporate income taxes, with unused credits carried forward for up to five consecutive years.

Requires the Arizona Department of Housing to administer the program, issue eligibility statements, hold annual public hearings, and submit annual reports analyzing the economic impact and housing units produced.

All related statutory provisions are set to be repealed after December 31, 2036, though credits reserved before that date remain valid.