HB 2760 - Historic Preservation Tax Credit

• Establishes a 20% income tax credit for qualified rehabilitation expenses of certified historic structures in Arizona for taxable years 2023-2032, with a combined annual cap of $15 million ($30 million total for 2033 onward).

• Creates Arizona State Parks Board authority to certify historic rehabilitations through an initial certification (before construction) and final certification (after completion) process, with cost-benefit analysis required by the Arizona Commerce Authority.

• Reserves 60% of annual aggregate tax credit dollar limit for rehabilitations in cities and towns with populations under 150,000 persons in the first application period each year.

• Allows qualified rehabilitation expenses to be calculated over either a 24-month or 60-month period (if done in phases) and requires expenses to exceed 50% of the structure's adjusted basis to qualify as "substantial rehabilitation."

• Permits taxpayers to carry forward unused credits for 10 consecutive taxable years and allows assignment, transfer, or sale of credits to other persons, with a 2.25% administrative fee charged by the State Parks Board.