Budget & Taxes (Tax Incentives)

introduced · Arizona · House Jan 22, 2026

HB 2747: income tax; subtraction; small businesses

HB 2747 would allow Arizona small businesses to subtract certain federal hiring credits from their state taxable income. Specifically, it adds a new subtraction for amounts claimed under federal work opportunity credits, empowerment zone credits, and other similar programs. This directly affects small businesses that qualify for these federal credits and file Arizona income tax returns. The change would reduce their Arizona tax liability by the amount of those federal credits, without altering the federal credit rules themselves.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces small business tax liability via federal credit deductions, providing direct tax relief per Arizona tax code adjustments.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives

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vetoed · Arizona · Senate Apr 13, 2026

SB 1293: GPLET; abatement; limitation

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates temporary tax abatement for government property improvements in designated areas, reducing tax burden on public projects.95% confidence

Sub-Topics Tax Incentives

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introduced · Arizona · Senate Jan 20, 2026

SB 1130: property tax; exemption; widows; widowers

SB 1130 modifies Arizona's property tax exemption rules to provide full tax exemption for widows and widowers of first responders killed in the line of duty. It adjusts veterans' exemptions: those with 100% service-connected disability get full exemption, while others receive a scaled exemption up to $4,188 based on their disability percentage. Eligibility requires income under $34,901 (no children) or $41,870 (with qualifying children), with annual inflation adjustments to these limits. The bill also excludes vehicle taxes from property valuation calculations when determining exemption amounts.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemptions for widows/widowers of first responders and lower-income veterans, reducing tax burden on targeted groups within income limits.90% confidence ✓ VeteransSupports VeteransBill expands property tax exemptions for veterans with disabilities, providing scaled benefits up to $4,188 based on disability percentage.95% confidence

Sub-Topics Property Tax Tax Incentives Veteran Healthcare

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introduced · Arizona · House Jan 26, 2026

HCR 2039: property tax; primary residences; exemptions

HCR 2039 proposes amending Arizona's constitution to create a new property tax exemption for primary residences owned by eligible seniors. It would exempt the property of Arizona residents who are U.S. citizens, at least 65 years old, have lived in the state for three full tax years prior to claiming the exemption, and occupy the home as their primary residence. This exemption applies to tax years beginning after December 31, 2026, and requires no additional application beyond meeting the residency and age criteria. The bill does not change existing exemptions for veterans, widows, or disabled residents, as it specifically targets senior homeowners. As a constitutional amendment, it requires voter approval before implementation.

Topics ✓ Budget & TaxesSupports Budget & TaxesProposes property tax exemption for seniors, providing tax relief for lower-income residents, advancing fiscal support through reduced burden on fixed-income homeowners.90% confidence

Sub-Topics Property Tax Tax Incentives Tags Seniors

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signed · Arizona · House Jun 4, 2026

HB 2120: property tax exemption; disability; determination

HB 2120 amends Arizona's property tax law to expand exemptions for specific groups: widows/widowers, people with total permanent disabilities, and veterans with disabilities. It provides full tax exemption for veterans with 100% service-connected disability (and surviving spouses using the home as primary residence), and a partial exemption of $4,188 for others based on their disability rating percentage. To qualify, applicants must meet income limits ($34,901-$41,870 depending on children) and file annual affidavits with county assessors. The exemption amounts and income thresholds will adjust annually based on GDP and housing index changes. This directly affects eligible Arizona residents seeking relief on their primary residence property taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands property tax exemptions for lower-income groups (widows, disabled, veterans), providing direct tax relief per support indicators.92% confidence ✓ HousingSupports HousingBill provides property tax exemptions for disabled veterans/widows, reducing housing costs for eligible homeowners, aligning with affordable housing support.85% confidence ✓ VeteransSupports VeteransBill expands property tax exemptions for veterans with service-connected disabilities, providing full exemption for 100% disabled veterans and partial exemptions based on disability rating, directly advancing veteran benefits.95% confidence

Sub-Topics Property Tax Tax Incentives Property Taxes Veteran Healthcare

introduced · Arizona · House Jan 22, 2026

HB 2644: affordable housing; tax credits

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $10M annual tax credit for affordable housing investments, funding public housing programs through targeted tax incentives.95% confidence ✓ HousingSupports HousingBill creates tax credit for investments in affordable housing projects meeting federal standards, directly advancing affordable housing development through funding incentives.95% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Affordable Housing Historic Preservation Housing Finance

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passed · Arizona · House Jun 12, 2026

HB 2804: rural affordable housing; tax credits

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit matching state allocations for rural affordable housing, directing public funds toward housing development via tax incentives, aligning with fiscal support for essential housing programs.90% confidence ✓ HousingSupports HousingCreates tax credit funding rural affordable housing development, matching state allocations for qualifying projects, directly advancing affordable housing access.95% confidence

Sub-Topics Tax Credits Tax Incentives Affordable Housing Historic Preservation Housing Finance Tags Rural Communities

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introduced · Arizona · House Jan 26, 2026

HCR 2017: property tax; exemption; primary residence

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for seniors, reducing liability for lower-income homeowners, aligning with tax relief indicators.95% confidence

Sub-Topics Property Tax Tax Incentives

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introduced · Arizona · Senate Feb 3, 2026

SB 1371: commerce authority; qualified facility; definition

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates new business tax credit program (10% of investments), reducing state revenue to incentivize job creation and capital investment.90% confidence ✓ HealthcareSupports HealthcareMandates 65% premium coverage for qualifying businesses, incentivizing expanded health insurance access through tax credits.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentMandates 125% median wage (100% rural) + 65% health coverage for qualified jobs, directly advancing worker compensation standards.85% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Insurance

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introduced · Arizona · House Jan 13, 2026

HB 2019: individual income tax; filing exemption

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax exemption for young married couples, eliminating income tax liability for this group under Arizona tax code.95% confidence

Sub-Topics Income Tax Tax Incentives

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