HB 2660 extends Arizona’s affordable housing tax credit program by moving the program’s scheduled repeal date from December 31, 2025 to December 31, 2030. The bill amends the statutes governing the state’s affordable housing premium tax credit and income tax credits so that taxpayers can continue to claim credits tied to qualified low-income housing projects that receive an eligibility statement from the Arizona Department of Housing. The credits remain generally equal to at least 50 percent of the federal low-income housing credit amount determined by the department for a qualified project.
The bill also updates the program’s administrative framework. It preserves the ability to allocate credits among partners, members, or shareholders; keeps the five-year carryforward for unused credits; and maintains recapture rules if the related federal credit is recaptured. The Department of Housing continues to administer allocations under the qualified allocation plan, issue eligibility statements, hold annual public hearings, and submit annual reports on whether the credits are producing additional affordable housing units and what economic impact they have on the state.
Impact
HB 2660 would extend the life of Arizona’s existing affordable housing tax credit statutes in Title 20 and Title 43 and revise the delayed-repeal provisions in the 2021 law that created them. It affects premium tax liability for insurers and income tax liability for qualifying taxpayers, while preserving the Department of Housing’s authority to allocate credits for projects that qualify for the federal low-income housing tax credit. The bill also continues the statutory limits on annual credit allocations, including the higher $10 million annual cap for 2026 through 2030, and keeps the reporting, hearing, and rulemaking requirements in place.
Sentiment
Based on the bill title, sponsor list, and absence of recorded opposition or committee/vote data in the provided materials, the bill appears to be a broadly supported extension of an existing housing incentive program. The bipartisan sponsorship suggests interest from both parties in continuing the credit. No transcript or voting history is provided showing formal debate, amendments, or recorded dissent.
Contention
The main policy issue implicit in the bill is whether Arizona should continue using tax credits to subsidize affordable housing development through 2030, including the associated revenue cost to the state. Potential points of contention include the size of the annual credit cap, the effectiveness of the credits in producing additional affordable housing units, and whether the program should continue beyond the original 2025 sunset. The bill’s required annual report and public hearing provisions suggest that lawmakers may want ongoing oversight of whether the credits are delivering measurable housing and economic benefits.