Bill > HB2987

This bill establishes a new income tax credit for the substantial rehabilitation of certified historic structures, which are properties listed on the national or Arizona register of historic places, or located in a registered historic district and deemed historically significant. The State Historic Preservation Officer (SHPO) will oversee the application and certification process, requiring that rehabilitation projects meet federal rehabilitation standards, demonstrate a positive economic impact, and achieve a minimum point score based on job growth, economic impact, and community support. Property owners must agree to a restrictive covenant to preserve the historic structure during a holding period of 24 months after certification. The bill sets an annual aggregate tax credit limit of $30 million, with 60% reserved for projects in smaller cities and towns during the first application period each year. The tax credit amount will be 20% of qualified rehabilitation expenses, or 25% for projects that are also certified affordable housing projects. These credits can be carried forward for ten years and can be sold or transferred to other individuals or entities. The bill also adds these new tax credits to the schedule for review by the joint legislative income tax credit review committee.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/85400