SB 1124 - NYU Furman Center

State Land Use Enacted Legislation

Bill #	State	Year	Party	Topic
SB 1124	AZ	2021	R	Affordable housing incentives and financing, Tax Incentives

Provided by Furman

Summary

Creates the affordable housing premium tax credit program, allowing insurers to receive credits for qualified projects defined as a qualified low-income building as defined in section 42(c)(2) of the internal revenue code.

Provides that credits may amount to at least fifty percent of the qualified project’s federal low-income housing credit.

Allows credits to be allocated among partners, members, or shareholders regardless of their share of ownership interest.

Requires recapture of the tax credit if a qualified project’s federal low-income housing tax credit is subject to recapture within the first ten taxable years after a project is placed into service.

Creates the affordable housing tax credit program for individual, corporate, and insurer taxpayers, allowing them to receive a credit if issued an eligibility statement by the Arizona Department of Housing Issues.

Provides that credits may amount to at least fifty percent of the qualified project’s federal low-income housing credit.

Allows for a total of $4,000,000 in affordable housing tax credits to be allocated in a calendar year.

Disallows projects approved for affordable housing tax credits from receiving other abatements, exemptions, or reductions in state or local property taxes.

Instructs the Department of Housing Issues to submit an annual report addressing whether the approved tax credits produced a significant number of additional affordable housing units.

Allows credits to be allocated among partners, members, or shareholders regardless of their share of ownership interest.

Requires recapture of the tax credit if a qualified project’s federal low-income housing tax credit is subject to recapture within the first ten taxable years after a project is placed into service.

Creates an affordable housing tax credit review committee, tasked with reviewing the program every three years, considering the history, rationale, and estimated revenue impact of the credit; whether the credit has made a measurable economic benefit; whether the application process for affordable housing tax credits is unnecessarily complex; the number of housing units generated by the tax credit; and the average income of residents offered housing units.

Provided by lawmakers