Arizona House Bill HB2987

Arizona 2026 Regular Session

• Introduced: 2/5/26

Caption

income tax credit; historic preservation

Impact

One of the major impacts of HB2987 is the establishment of a tax credit amounting to 20% of eligible rehabilitation expenses, increasing to 25% for certified affordable housing projects. This financial incentive is designed to promote the preservation of historically significant sites and contribute positively to local economies by stimulating job creation and enhancing property values. The bill allocates up to $30 million annually in tax credits to ensure a robust support mechanism for historic rehabilitation efforts throughout the state.

Summary

House Bill 2987 introduces a series of amendments to Arizona's tax code to create a historic preservation tax credit aimed at incentivizing the rehabilitation of certified historic structures. The bill establishes a structured application process whereby the state historic preservation officer will evaluate and certify rehabilitation projects that meet specific criteria. This certification is critical for applicants to claim the tax credits available under the amended sections 43-1080 and 43-1166 of the Arizona Revised Statutes, which outline the conditions under which these credits can be claimed.

Contention

Despite its potential benefits, the bill may face contention over its implications regarding local governance and the prioritization of projects in urban versus rural areas. Notably, the allocation of 60% of the tax credits to projects in smaller municipalities may lead to debates about equity in funding access. Opponents might argue that focusing primarily on historic preservation could divert necessary resources from other pressing community needs, suggesting an ongoing discussion about balancing historical and modern community development priorities.