H.B.2568

Arizona State Legislature

Bill Title affordable housing tax credit
Hispanic Sponsors AZ Rep. Tony Rivero (R-AZ-021)
Date Introduced 02/05/2018
NHCSL Task Force
Banking, Affordable Housing & Credit
Primary Issue Area Congress
Issue Areas
Federal and intergovernmental affairs
Taxation
Session 53rd Legislature - 2nd Regular Session

Summary

HB2568 - 532R - House Bill Summary ARIZONA HOUSE OF REPRESENTATIVES HB 2568: affordable housing tax credit PRIME SPONSOR: Representative Rivero, LD 21 BILL STATUS: Caucus & COW APPROP: DP 9-4-0-0 Abstract Relating to the AHTC. Provisions 1. Establishes the AHTC which is administered by ADOH. (Sec. 2) 2. Requires ADOH to allocate the AHTC for projects that qualify for the FLIHTC beginning July 1, 2020 and that the amount allocated must be equal to the FLIHTC. (Sec. 2) 3. Requires ADOH to establish procedures and criteria for applying, evaluating, and qualifying for the AHTC. (Sec. 2) 4. Stipulates that ADOH must issue an eligibility statement for each qualified project that states the allocation year and the amount of the AHTC allocated to the project. (Sec. 2) 5. Asserts that any taxpayer that owns an interest in a qualified project that receives an eligibility statement is allowed an AHTC for taxable years beginning January 1, 2019 and must apply the credit against the taxpayer's insurance premium or income tax liability. (Sec. 2) 6. Requires ADOH, in cooperation with DOI and DOR, to adopt rules, procedures and criteria for issuing eligibility statements. (Sec. 1,2,4,5) 7. Establishes the AHTC against premium tax, income tax, and corporate tax incurred for tax payers who apply to ADOH and receive an eligibility statement for a qualified project. a. Stipulates that the amount of AHTC must be equal to the amount of FLIHTC for the qualified project. b. Allows the tax credit to be allocated amongst the participants of the project if the credit amount does not exceed the amount approved and ADOH or DOI, respectively, is notified of the allocation. (Sec. 1,4,5) 8. Stipulates that a tax payer must submit the eligibility statement to DOI for premium tax and DOR for income and corporate tax with the tax payers tax return to qualify for AHTC. (Sec. 1,4,5) 9. Limits the amount of time that AHTC can be carried forward to not more than five consecutive taxable years. (Sec. 1,4,5) 10. States that if all or part of the FLIHTC is subject to recapture under the Internal Revenue Code during the first ten taxable years of the project, then AHTC is also subject to recapture in a proportional amount from all tax payers who claimed the credit. (Sec. 1,4,5) 11. Asserts that a tax credit claimed by a taxpayer against state premium tax liability is not required to pay any additional retaliatory tax imposed as a result of claiming that tax credit. (Sec. 1) 12. Defines pertinent terms. (Sec. 2) 13. Makes conforming changes. (Sec. 3) 14. Contains a purpose clause. (Sec. 6) 15. Contains a general effective date of January 1, 2019. (Sec. 7) Current Law If DOR determines that any amount of tax, penalty, or interest has been overpaid in excess, DOR must credit the excess amount against any tax liability that the tax payer may owe. If the credit cannot be credited against any tax payer liability, then DOR may: refund the amount in a lump sum or in five annual installments; issue a credit voucher for the entire amount and apply it against future tax liabilities until exhausted; or, issue a refund for part of the amount and issue a credit voucher for the balance. (A.R.S. SS 42-1118) Additional Information FLIHTC was established by the Tax Reform Act of 1986. FLIHTC gives state allocating agencies nearly $8 billion annually to issue tax credits for purchasing, rehabbing, or constructing rental housing targeted at lower income households. FLIHTC averaged over 1,460 projects and 110,000 available units annually between 1995 to 2015. ---------- DOCUMENT FOOTER --------- Fifty-third Legislature HB 2568 Second Regular Session Version 2: Caucus & COW ---------- DOCUMENT FOOTER ---------