income tax credit; historic preservation

HB 2275 creates an income tax credit for property owners who substantially rehabilitate certified historic structures in Arizona, including buildings listed in the national or Arizona historic registers or located in registered historic districts. The State Historic Preservation Officer certifies projects meeting federal rehabilitation standards, demonstrating positive economic impact through a cost-benefit analysis, and achieving minimum points in a grading system focused on job growth and community support. The credit has an annual cap of $30 million (rising to $60 million by 2036), with 60% reserved for projects in communities under 150,000 residents, and requires a restrictive covenant from property owners to maintain historic character. Applications include fees based on project size, with larger projects needing CPA certification, and decisions must be issued within 90 days.