affordable housing; qualified projects; eligibility

SB 1602 establishes a state tax credit equal to at least 50% of the federal low-income housing tax credit for affordable housing projects meeting federal affordability standards and placed in service after June 30, 2022. The program allocates up to $4 million annually for qualifying projects, with credits applied against state income or insurance premium taxes. Projects receiving this credit cannot also receive state or local property tax abatements. The Arizona Department of Revenue will manage the program, including setting eligibility rules, holding public hearings, and reporting annually on its impact.