Arizona's HB 2804 creates a new tax credit to support rural affordable housing development. It allows taxpayers (primarily developers or investors in qualifying projects) to claim a credit against their state insurance premium tax for projects in counties with under 800,000 residents that also qualify for federal low-income housing tax credits. The credit amount matches the state's allocation for each project, capped at $2 million annually through 2036, and requires an eligibility statement from the Arizona Department of Housing. Taxpayers can offset the credit against premium tax liability, carry forward unused portions for up to five years, and the program includes annual reporting requirements for the department.
HCR 2017 is a proposed constitutional amendment that would create a new property tax exemption for Arizona residents aged 62 or older who own their primary residence without a mortgage and have lived there as their main home for at least two years. If approved by voters, this exemption would apply to tax years beginning after December 31, 2026. The amendment would specifically affect seniors meeting these criteria by eliminating property tax liability on their primary residence. This proposal requires voter approval and is not yet law, as it is currently in the early legislative review stages.
SB 1371 creates a new income tax credit program in Arizona for businesses expanding or locating "qualified facilities" (like manufacturing plants) within the state. To qualify, businesses must make new capital investments, create jobs paying at least 125% of the median wage (100% in rural areas), and provide health insurance covering 65% of premiums. The credit equals 10% of qualifying investments, paid as $200,000-$300,000 per new job over five years, with annual limits of $125 million total and $30 million per business. This directly affects qualifying businesses seeking tax incentives for facility investments and job creation in Arizona.
HB 2631 repeals Arizona's Section 41-1519, which provided tax relief for qualifying data center facilities. This bill directly affects data center businesses that previously qualified for this specific tax incentive. The repeal removes the provision allowing these facilities to receive tax relief under the referenced statute, though it does not change other tax rules. The bill is purely procedural, eliminating an existing tax provision without creating new requirements.
SB 1033 amends Arizona's tax code to add new exemptions from local transaction privilege taxes (TPT). It exempts specific services including internet access providers (defined as enabling users to access the internet), nonprofit events tied to major sports teams (with restrictions), machinery maintenance contracts, and leasing between affiliated businesses. The bill directly affects businesses providing these services by removing local TPT liability on qualifying transactions. It does not address residential property exemptions, as suggested in the title, and focuses solely on expanding existing tax exemption categories for commercial activities. The changes are purely procedural within Arizona's tax framework, with no new funding or regulatory impacts.
HB 2019 creates a new tax exemption for married individuals under age 25, regardless of income source. It directly affects married couples where both spouses are under 25 years old, exempting them from Arizona's individual income tax for tax years beginning after December 31, 2026. The bill adds Section 43-1043 to the tax code, requiring the state tax department to establish a verification process for eligibility. This is a concrete policy change that eliminates income tax liability for this specific group starting in 2027.
