HB 2568 — affordable housing tax credit

HB2568 - 532R - IH Ver       REFERENCEHouse TITLE:Engrossed         State of Arizona House of Representatives Fifty-third Legislature Second Regular Session     HOUSE BILL 2568       AN ACT   Amending title 20, chapter 2, article 1, Arizona Revised Statutes, by adding section 20-224.08;

affordable housing tax credit         State of Arizona House of Representatives Fifty-third Legislature Second Regular Session     HB 2568   Introduced by Representative Rivero     AN ACT   Amending title 20, chapter 2, article 1, Arizona Revised Statutes, by adding section 20-224.08;

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, 2019, in an amount equal to the amount of the federal credit. credit allowed in each taxable year during the federal credit period.  The department shall allocate tax credits under this section according to its 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 and States the allocation year and the amount of the credits allocated to the project.

D.  AnyD.  The taxpayerdepartment thatshall ownsnot anapprove interesttax incredits anunder investmentthis section in aany qualifiedcalendar projectyear and that receivesexceed ana eligibilitytotal statementof fromten themillion departmentdollars, isaccording allowedto athe taxdate creditof underthe thisallocation sectionof forthe taxablecredit.  yearsAn beginningapproved fromamount andapplies afteragainst Decemberthe 31,dollar 2018. limit for the taxpayeryear shallin applywhich the creditapplication againstis submitted.  If, at the taxpayer'send insuranceof premiumany oryear, incomean taxunused liabilitybalance asoccurs provided,under andthe subjectdollar tolimits prescribed by this subsection, the procedures,balance termsshall andbe conditionsreallocated prescribed,for bythe sectionpurposes 20‑224.08,of 43‑1075this orsubsection 43‑1163,in asthe applicable.following year.

E.  TheE.  Any Arizonataxpayer departmentthat ofowns housing,an withinterest thein cooperationan ofinvestment thein departmenta ofqualified insuranceproject and that receives an eligibility statement from the department ofis revenue,allowed shalla adopttax rulescredit andunder publishthis andsection prescribefor formstaxable years beginning from and proceduresafter asDecember necessary31, to2018.  effectuatethe taxpayer shall apply the purposescredit ofagainst thisthe section,taxpayer's includinginsurance criteriapremium onor whichincome eligibilitytax statementsliability areas issuedprovided, underand thissubject section.to the procedures, terms and conditions prescribed, by section 20‑224.08, 43‑1075 or 43‑1163, as applicable.

F.  ForF.  A qualified project that is approved for the purposes of the credit under this section: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 the department of revenue, shall adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this section, including criteria on which eligibility statements are issued under this section.

H.  For the purposes of this section: