The bill reserves a portion of the tax credits specifically for rehabilitation projects in smaller municipalities, thereby prioritizing economic growth and preservation in less populous areas. This not only supports the preservation of cultural heritage but also promotes local community development, aligning with broader goals of community revitalization. Additionally, the bill enhances the role of the State Historic Preservation Officer in evaluating and certifying these projects, thereby introducing a structured oversight mechanism that ensures projects meet specified rehabilitation standards and deliver tangible benefits to local municipalities.
Summary
House Bill 2791 seeks to create income tax credits for the substantial rehabilitation of certified historic structures in Arizona. It amends various sections of the Arizona Revised Statutes to introduce financial incentives aimed at preserving historical properties. The bill establishes a framework where rehabilitation expenses can be quantified and a tax credit can be claimed, thereby encouraging property owners to invest in upkeep and improvement of historically significant structures. The structure is defined to include properties listed in the National Register of Historic Places or the Arizona Register of Historic Places, and the tax credits provided can be a significant financial boon for stakeholders involved in such rehabilitation efforts.
Contention
Notably, there may be contention around the allocation of tax credits and the criteria for certification, as it could potentially favor larger projects or developers over smaller historical properties owned by individuals or nonprofit organizations. The bill specifies that 60% of the annual tax credit limit is reserved for smaller municipalities, which could mitigate some opposition but raises questions about resource distribution. Further, the requirement for a cost-benefit analysis to demonstrate a positive economic impact adds another layer of scrutiny, creating a rigorous evaluation process that may not always align with the expectations of property owners seeking quick restorations.
Amends sections of law relative to historic tax credits including increasing the maximum project credit and implementing requirements relative to following prevailing wage requirements..