Tax credit; private land; border
This bill may significantly impact state law by introducing a financial incentive for landowners that could promote collaboration with federal initiatives, especially concerning border security. The provision that allows landowners to carry forward unused tax credits for up to five years provides a financial safety net for those whose tax burden is less than the value of the credit. This encourages participation from landowners, adding an economic dimension to land use concerning government contracts.
House Bill 2053 aims to provide an income tax credit to private landowners in Arizona who permit the federal government to use their land for the construction of an international boundary wall. The bill introduces amendments to the Arizona Revised Statutes, specifically sections 43-1080 and 43-1169, to establish this tax credit. The credit is based on the fair market value of the land utilized for the wall, ensuring that landowners are compensated for their contribution to the federal project.
While the bill presents advantages for landowners and aims to facilitate federal projects, it may also spur debate regarding the appropriation of private land for government use. Supporters argue that the tax credit creates a fair compensation mechanism for landowners, whereas opponents may express concerns over potential overreach and the prioritization of federal interests over local property rights. This discussion could evolve as the bill progresses through legislative channels, reflecting broader societal sentiments about land use and federal authority.