This bill allows Arizona to participate in a federal tax credit program, enabling individuals to claim a credit for contributions to qualified scholarship organizations. Starting in 2027, certified Arizona scholarship groups can provide funds for elementary and secondary education expenses, such as tuition or materials, under federal law. The state’s Department of Education must certify these organizations, maintain a public list of them, and submit annual reports to the federal government to maintain eligibility. The bill does not create new scholarships but aligns Arizona with existing federal tax incentives for education-related donations.
SB 1293 amends Arizona law to allow cities and towns to temporarily eliminate a tax on government-owned property improvements (like buildings on public land) for up to eight years. To qualify, the improvement must be located in a designated central business district (with strict size and compactness limits) and a blighted area, and must increase property value by at least 100%. For leases entered after May 2010, governing bodies must approve them with a simple majority vote after providing notice and an independent economic analysis showing community benefits outweigh lessee benefits (except for residential rental housing). The tax abatement must be applied for before the first tax payment due after the property is occupied.
HB 2261 amends Arizona property tax law to clarify and expand classifications for agricultural real property. It creates Class 2 (R) for agricultural land (including crops like trees/vines, nonprofit agricultural properties, golf courses, and guest ranches) and Class 2 (C) for land with conservation easements. The bill also refines Class 4 property to include specific residential uses like childcare facilities, senior/disabled housing, and agricultural employee housing (with land valued as agricultural). These changes directly affect Arizona property owners, particularly farmers, ranchers, nonprofits, and residential property managers, by defining how their properties are classified for tax purposes under existing valuation rules.
HB 2029 creates a Water Conservation Grant Fund to support water-saving projects in Arizona. It allows eligible entities (like local governments or nonprofits partnering with them) to apply for grants for conservation programs (up to $3 million) or projects (up to $250,000), requiring a 25% match from other sources. Applicants must disclose projected water savings, the source of saved water (groundwater or surface water), and their plan for using the saved water. The Water Infrastructure Finance Authority must adopt implementing rules within 90 days of the bill's effective date.
HB 2055 establishes a program to fund projects recovering brackish (salty) groundwater in Arizona. It provides matching state funds (up to $1 for every $3 in project costs) for eligible projects that build facilities to treat and deliver this water as a new drinking water source. The program requires the state to issue a request for proposals within 120 days and sets criteria like salinity data, permits, and engineering plans for qualifying projects. This aims to create new potable water sources by supporting infrastructure development using brackish groundwater resources.
HB 2117 redirects $17 of the $25 annual fee for Arizona's environmental special license plates into a dedicated fund. The state natural resource conservation board will distribute $5,000 to $10,000 annually to each natural resource conservation district with an established education center. These funds must support environmental education programs that are scientifically based and address economic and social implications. The bill specifies that funds are exclusively for conservation education programs at local districts, without changing the plate fee structure.
SB 1430, the "Tax Corrections Act of 2026," amends Arizona's retail tax code to clarify and correct exemptions from the sales tax. It adds 25 specific exemptions, including sales of medical equipment (like prosthetics, hearing aids, and durable medical devices), prescription drugs, food, textbooks, and nonprofit sales. This directly affects businesses selling these items by ensuring they are exempt from the tax, resolving prior ambiguities in the code. The bill is a technical correction to the tax code, not a change in tax rates or policy.
HB 4026 creates a state-funded program where Arizona cities, towns, and counties receive payments for public infrastructure improvements (like roads or utilities) supporting new or expanding manufacturing facilities. To qualify, manufacturers must certify minimum capital investments ($50 million for smaller counties, $500 million for larger ones) and sign agreements detailing project costs. Payments are capped at 80% of infrastructure costs or annual state tax revenues from qualifying projects, with a yearly maximum of $75 million total. The program requires local governments to return excess funds if payments exceed the cap and ensures funds are used exclusively for infrastructure tied to the manufacturing facility.
HB 2620 allocates $300,000 annually from the state general fund for fiscal years 2026-2031 to the Arizona Department of Veterans' Services. This funding will be distributed as grants to emergency shelters that provide low-barrier, single-adult shelter for veterans aged 55 or older, with at least 100 beds in non-congregate settings, specifically serving homeless veterans. The bill targets shelters that don’t require pre-scheduled appointments to ensure immediate access for vulnerable veterans. This is a funding measure, not a new program, directly supporting existing shelters serving homeless veterans through annual grants.
HB 2418 allocates $600,000 from Arizona's state general fund for fiscal year 2026-2027 to the Arizona Criminal Justice Commission. The commission must distribute this funding evenly to the five existing major incident task forces as of the bill's effective date. This funding supports these task forces' operations but does not create new policies or change eligibility for assistance.
