This bill updates how money from Arizona's state lottery is distributed and clarifies rules for examining insurance companies. It ensures that funds are first used to pay off lottery-related bond debts, then allocates specific amounts to various programs including wildlife conservation, child safety, health education, and homeless shelters. The legislation also establishes a minimum deposit requirement for the state general fund before certain heritage funds can receive money and sets a schedule for quarterly transfers. Additionally, it mandates that the insurance director examine domestic insurers at least once every five years and allows for accepting reports from other states to avoid duplicate reviews.
HB 2987 creates a new state income tax credit for owners rehabilitating certified historic structures in Arizona. It establishes a $30 million annual tax credit limit (increasing to $60 million after 2035) for projects meeting federal rehabilitation standards, requiring a cost-benefit analysis proving positive economic impact. The state historic preservation officer certifies projects based on a point system evaluating job growth, economic impact, and community support, with 60% of funds reserved for projects in cities/towns under 150,000 residents. Property owners must grant a restrictive covenant to preserve the structure for 24 months after certification, and larger projects require certified public accountant verification.
HB 2375 requires Arizona cities with over 75,000 residents to allow duplexes, triplexes, fourplexes, and townhomes by January 1, 2026, on single-family lots within one mile of downtown and on at least 20% of new developments over ten acres. It prohibits cities from imposing extra parking requirements, height limits, or special permits that would make these housing types harder to build. The law does not apply to historic districts, airport areas, or rural zones without residential services. Cities failing to comply by 2026 must allow middle housing on all single-family lots without restrictions.
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.
HB 2644 creates a new tax credit for Arizona taxpayers investing in affordable housing projects that qualify for federal low-income housing tax credits. It allows investors to claim credits against their insurance premium tax liability (not income tax), with a $10 million annual cap for projects meeting federal standards, administered by the Arizona Department of Housing. The credit is allocated based on project eligibility statements, can be shared among investors regardless of ownership stake, and expires after 2031. Taxpayers must submit documentation with their tax returns, and unused credits may be carried forward for up to five years. The bill requires annual reporting on housing impacts but does not change income tax rates or directly affect renters.
