Arizona 2023 Regular Session

Arizona House Bill HB2318 Compare Versions

Only one version of the bill is available at this time.

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1	1	REFERENCE TITLE: affordable housing; tax credits; extension State of Arizona House of Representatives Fifty-sixth Legislature First Regular Session 2023 HB 2318 Introduced by Representative Livingston An Act amending section 41-3954, Arizona Revised Statutes; amending Laws 2021, chapter 430, sections 3, 6, 8, 11, 14 and 19; relating to affordable housing tax credits. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9	9	REFERENCE TITLE: affordable housing; tax credits; extension
10	10	State of Arizona House of Representatives Fifty-sixth Legislature First Regular Session 2023
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14	14	REFERENCE TITLE: affordable housing; tax credits; extension
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40	40	HB 2318
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64	64	An Act
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68	68	amending section 41-3954, Arizona Revised Statutes; amending Laws 2021, chapter 430, sections 3, 6, 8, 11, 14 and 19; relating to affordable housing tax credits.
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78	78	Be it enacted by the Legislature of the State of Arizona: Section 1. Section 41-3954, Arizona Revised Statutes, is amended to read: START_STATUTE41-3954. Affordable housing tax credit; limit; eligibility statement; rules; public hearings; annual report; definitions A. The affordable housing tax credit is established. The department shall administer the credit as provided by this section. B. On application, the department shall allocate tax credits under this section for projects in this state that qualify for the federal low-income housing tax credit under section 42 of the internal revenue code and that are placed in service, for purposes of the federal credit, from and after June 30, 2022, in an amount equal to at least fifty percent of the amount of the federal credit allowed in each taxable year during the federal credit period. The department shall allocate tax credits under this section according to the department's current qualified allocation plan adopted pursuant to section 42(m) of the internal revenue code. C. The department shall prescribe forms, procedures and criteria for applying, evaluating and qualifying for the credit under this section. The department shall issue an eligibility statement for each qualified project that identifies the qualified project, the allocation year and the amount of the credits allocated to the project. D. The department shall allocate a total of $4,000,000 of tax credits under this section in any calendar year through 2023 and a total of $12,000,000 of tax credits in any calendar year thereafter according to the date of the allocation of the credit. An approved amount applies against the dollar limit for the year in which the application is submitted. If, at the end of the calendar year, an unused balance occurs under the dollar limit prescribed by this subsection, the balance shall be reallocated for the purposes of this subsection in the following year. E. Any taxpayer that owns an interest in an investment in a qualified project that receives an eligibility statement from the department is allowed a tax credit under this section for taxable years beginning from and after December 31, 2021 if the taxpayer acquires the interest before filing a tax return claiming the tax credit. The taxpayer shall apply the credit against the taxpayer's insurance premium or income tax liability as provided by and subject to the procedures, terms and conditions prescribed by section 20-224.04, 43-1075 or 43-1163, as applicable. F. A qualified project that is approved for the purposes of the credit under this section is not eligible for any abatement, exemption or other reduction in state or local ad valorem property taxes otherwise allowed by statute. G. The Arizona department of housing, with the cooperation of the department of insurance and financial institutions and the department of revenue, shall adopt rules and publish and prescribe forms and procedures as necessary to administer this section, including criteria on which eligibility statements are issued under this section. H. On or before July 30 of each year, the department shall hold a public hearing to solicit and accept public comments relating to the amount of the credit under this section to be used for qualified projects that are financed through tax-exempt bond issuance as part of the qualified allocation plan process and other affordable housing tax credit issues. The department shall post a copy of all comments submitted during each public hearing on the department's website before September 15 of the year in which the public hearing is held. I. On or before December 31 of each year, the department shall submit to the president of the senate and the speaker of the house of representatives a report that addresses whether the credits approved under this section produced a significant number of additional affordable housing units in this state and that analyzes the economic impact of the credits approved under this section on this state. The department shall provide a copy of this report to the secretary of state. J. For the purposes of this section: 1. "Internal revenue code" has the same meaning prescribed by section 43-105. 2. "Qualified project" means a qualified low-income building as defined in section 42(c)(2) of the internal revenue code. 3. "Taxpayer" means a person, firm or corporation that is subject to taxation under title 20 or under title 43, chapter 10 or 11. END_STATUTE Sec. 2. Laws 2021, chapter 430, section 3 is amended to read: Sec. 3. Delayed repeal Section 20-224.04, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430, section 2, is repealed from and after December 31, 2025 2031. Sec. 3. Laws 2021, chapter 430, section 6 is amended to read: Sec. 6. Delayed repeal Section 41-3954, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430, section 5, is repealed from and after December 31, 2025 2031. Sec. 4. Laws 2021, chapter 430, section 8 is amended to read: Sec. 8. Delayed repeal Section 43-225, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430, section 7, is repealed from and after December 31, 2025 2031. Sec. 5. Laws 2021, chapter 430, section 11 is amended to read: Sec. 11. Delayed repeal Section 43-1075, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430, section 10, is repealed from and after December 31, 2025 2031. Sec. 6. Laws 2021, chapter 430, section 14 is amended to read: Sec. 14. Delayed repeal Section 43-1163, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430, section 13, is repealed from and after December 31, 2025 2031. Sec. 7. Laws 2021, chapter 430, section 19 is amended to read: Sec. 19. Saving clause The repeal of sections 20-224.04, 41-3954, 43-225, 43-1075 and 43-1163, Arizona Revised Statutes, by this act Laws 2021, chapter 430, does not: 1. Limit or impair the issuance of premium tax credits or income tax credits for qualified projects that receive a reservation from the Arizona department of housing pursuant to section 41-3954, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430, section 5, before December 31, 2025 2031 or a taxpayer's ability to redeem such tax credits in accordance with sections 20-224.04, 41-3954, 43-1075 and 43-1163, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430. 2. Affect any act done or right accruing or accrued or any suit or proceeding had or commenced in any civil cause of action before the repeal. All rights and liabilities under such acts continue and may be enforced in the same manner as allowed before the repeal.
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80	80	Be it enacted by the Legislature of the State of Arizona:
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82	82	Section 1. Section 41-3954, Arizona Revised Statutes, is amended to read:
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84	84	START_STATUTE41-3954. Affordable housing tax credit; limit; eligibility statement; rules; public hearings; annual report; definitions
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86	86	A. The affordable housing tax credit is established. The department shall administer the credit as provided by this section.
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88	88	B. On application, the department shall allocate tax credits under this section for projects in this state that qualify for the federal low-income housing tax credit under section 42 of the internal revenue code and that are placed in service, for purposes of the federal credit, from and after June 30, 2022, in an amount equal to at least fifty percent of the amount of the federal credit allowed in each taxable year during the federal credit period. The department shall allocate tax credits under this section according to the department's current qualified allocation plan adopted pursuant to section 42(m) of the internal revenue code.
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90	90	C. The department shall prescribe forms, procedures and criteria for applying, evaluating and qualifying for the credit under this section. The department shall issue an eligibility statement for each qualified project that identifies the qualified project, the allocation year and the amount of the credits allocated to the project.
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92	92	D. The department shall allocate a total of $4,000,000 of tax credits under this section in any calendar year through 2023 and a total of $12,000,000 of tax credits in any calendar year thereafter according to the date of the allocation of the credit. An approved amount applies against the dollar limit for the year in which the application is submitted. If, at the end of the calendar year, an unused balance occurs under the dollar limit prescribed by this subsection, the balance shall be reallocated for the purposes of this subsection in the following year.
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94	94	E. Any taxpayer that owns an interest in an investment in a qualified project that receives an eligibility statement from the department is allowed a tax credit under this section for taxable years beginning from and after December 31, 2021 if the taxpayer acquires the interest before filing a tax return claiming the tax credit. The taxpayer shall apply the credit against the taxpayer's insurance premium or income tax liability as provided by and subject to the procedures, terms and conditions prescribed by section 20-224.04, 43-1075 or 43-1163, as applicable.
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96	96	F. A qualified project that is approved for the purposes of the credit under this section is not eligible for any abatement, exemption or other reduction in state or local ad valorem property taxes otherwise allowed by statute.
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98	98	G. The Arizona department of housing, with the cooperation of the department of insurance and financial institutions and the department of revenue, shall adopt rules and publish and prescribe forms and procedures as necessary to administer this section, including criteria on which eligibility statements are issued under this section.
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100	100	H. On or before July 30 of each year, the department shall hold a public hearing to solicit and accept public comments relating to the amount of the credit under this section to be used for qualified projects that are financed through tax-exempt bond issuance as part of the qualified allocation plan process and other affordable housing tax credit issues. The department shall post a copy of all comments submitted during each public hearing on the department's website before September 15 of the year in which the public hearing is held.
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102	102	I. On or before December 31 of each year, the department shall submit to the president of the senate and the speaker of the house of representatives a report that addresses whether the credits approved under this section produced a significant number of additional affordable housing units in this state and that analyzes the economic impact of the credits approved under this section on this state. The department shall provide a copy of this report to the secretary of state.
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104	104	J. For the purposes of this section:
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106	106	1. "Internal revenue code" has the same meaning prescribed by section 43-105.
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108	108	2. "Qualified project" means a qualified low-income building as defined in section 42(c)(2) of the internal revenue code.
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110	110	3. "Taxpayer" means a person, firm or corporation that is subject to taxation under title 20 or under title 43, chapter 10 or 11. END_STATUTE
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112	112	Sec. 2. Laws 2021, chapter 430, section 3 is amended to read:
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114	114	Sec. 3. Delayed repeal
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116	116	Section 20-224.04, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430, section 2, is repealed from and after December 31, 2025 2031.
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118	118	Sec. 3. Laws 2021, chapter 430, section 6 is amended to read:
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120	120	Sec. 6. Delayed repeal
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122	122	Section 41-3954, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430, section 5, is repealed from and after December 31, 2025 2031.
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124	124	Sec. 4. Laws 2021, chapter 430, section 8 is amended to read:
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126	126	Sec. 8. Delayed repeal
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128	128	Section 43-225, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430, section 7, is repealed from and after December 31, 2025 2031.
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130	130	Sec. 5. Laws 2021, chapter 430, section 11 is amended to read:
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132	132	Sec. 11. Delayed repeal
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134	134	Section 43-1075, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430, section 10, is repealed from and after December 31, 2025 2031.
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136	136	Sec. 6. Laws 2021, chapter 430, section 14 is amended to read:
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138	138	Sec. 14. Delayed repeal
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140	140	Section 43-1163, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430, section 13, is repealed from and after December 31, 2025 2031.
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142	142	Sec. 7. Laws 2021, chapter 430, section 19 is amended to read:
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144	144	Sec. 19. Saving clause
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146	146	The repeal of sections 20-224.04, 41-3954, 43-225, 43-1075 and 43-1163, Arizona Revised Statutes, by this act Laws 2021, chapter 430, does not:
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148	148	1. Limit or impair the issuance of premium tax credits or income tax credits for qualified projects that receive a reservation from the Arizona department of housing pursuant to section 41-3954, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430, section 5, before December 31, 2025 2031 or a taxpayer's ability to redeem such tax credits in accordance with sections 20-224.04, 41-3954, 43-1075 and 43-1163, Arizona Revised Statutes, as added by this act Laws 2021, chapter 430.
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150	150	2. Affect any act done or right accruing or accrued or any suit or proceeding had or commenced in any civil cause of action before the repeal. All rights and liabilities under such acts continue and may be enforced in the same manner as allowed before the repeal.