HB 2258 Summary

• Establishes a 20% income tax credit for qualified rehabilitation expenses of certified historic structures for taxable years 2024-2033, available to both individual and corporate taxpayers through sections 43-1080 and 43-1166.

• Creates Arizona State Parks Board authority to certify historic rehabilitations through initial and final certification processes, with two application periods annually and a combined annual aggregate tax credit limit of $15,000,000 (expandable to $30,000,000 after 2033).

• Reserves 60% of annual aggregate credits during the first application period for rehabilitation projects in cities and towns with populations under 150,000 persons.

• Requires rehabilitations to meet Secretary of Interior standards, produce positive economic impact per Arizona Commerce Authority analysis, achieve minimum point scores, and comply with 24-month restrictive covenants; charges applicants a 2.25% fee on qualified rehabilitation expenses.

• Allows unused credits to carry forward for 10 consecutive taxable years and permits transferability or sale of credits to other persons; prohibits credits for properties exempt from real property tax and limits co-owner claims to pro rata shares based on ownership interest.