The proposed bill amends existing Arizona tax law to establish a framework for income tax credits related to the substantial rehabilitation of certified historic structures. It introduces a new section (41-882) that outlines the responsibilities of the state historic preservation officer, including the evaluation and certification of rehabilitation projects. The bill reserves 60% of the annual tax credit limit for projects in smaller municipalities and sets a combined annual aggregate tax credit amount of $30 million, with an additional $30 million available starting in 2033. The bill also specifies the criteria for certification, including compliance with federal rehabilitation standards, economic impact assessments, and a grading system for projects.

Key changes from current law include the introduction of a structured application process with specific timelines, the requirement for a cost-benefit analysis by the Arizona commerce authority, and the ability for applicants to assign or sell their tax credits. The bill also clarifies the definitions of "certified historic structure" and "qualified rehabilitation expense," and establishes a tiered fee structure for applications based on the cost of rehabilitation. Additionally, it specifies that taxpayers claiming credits under this new section cannot claim credits under another related section (43-1166), ensuring that the benefits are not duplicated.

Statutes affected:
Introduced Version: 41-882, 43-222, 43-1080, 43-1166, 41-511.02, 43-1079.01, 43-1088, 43-1089.04, 43-1167.01, 43-1175, 43-1072.02, 43-1074.02, 43-1075, 43-1076.01, 43-1077, 43-1078, 43-1083, 43-1083.02, 43-1162, 43-1164.03, 43-1183, 43-1073, 43-1082, 43-1085, 43-1086, 43-1089, 43-1089.01, 43-1089.02, 43-1089.03, 43-1164, 43-1165, 43-1181, 43-1074.01, 43-1168, 43-1170, 43-1178, 43-1073.01, 43-1081.01, 43-1083.03, 43-1084, 43-1164.04, 43-1164.05, 43-1184