AZ HB2337

Arizona State Parks Board receives and certifies applications for historic preservation tax credits, with 60% of annual credits reserved for projects in cities/towns under 150,000 population and up to 15 million dollars in combined annual aggregate tax credits available starting 2015.

Taxpayers who substantially rehabilitate certified historic structures receive a 20% income tax credit on qualified rehabilitation expenses for taxable years 2015-2035, with credits available to both individual and corporate taxpayers under separate provisions.

Tax credits require both initial certification before construction and final certification after completion, with owners agreeing to 24-month restrictive covenants preventing alterations inconsistent with federal rehabilitation standards.

Unused credits may be carried forward for 10 consecutive years, transferred/sold to other persons, and cannot be claimed if the historic structure becomes tax-exempt within 24 months of final certification.

Arizona Commerce Authority must conduct cost-benefit analysis confirming positive economic impact before final certification; applicants pay 2.25% of qualified rehabilitation expenses as a processing fee.