Bill > HB2275

This bill establishes a comprehensive tax credit program for historic preservation in Arizona, creating a structured process for property owners to receive income tax credits for rehabilitating certified historic structures. The state historic preservation officer will manage the program, which allows tax credits of 20% (or 25% for affordable housing projects) of qualified rehabilitation expenses for substantial improvements to historic properties. The program will operate from 2025 to 2035, with an annual aggregate tax credit limit of $30,000,000, and includes provisions that 60% of the credits in the first application period will be reserved for rehabilitation projects in smaller cities and towns with populations under 150,000. Property owners must apply for certification, demonstrating that their rehabilitation project meets specific standards set by the U.S. Department of the Interior, produces a positive economic impact, and achieves a minimum point threshold. The bill requires owners to grant a restrictive covenant preventing inconsistent alterations to the historic structure for 24 months after certification. Additionally, the program allows tax credit holders to assign, transfer, or sell their credits, and unused credits can be carried forward for up to ten consecutive tax years. The legislation aims to stimulate economic development and preserve historic structures by providing financial incentives for their restoration and reuse.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/82034