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Arizona Bill Would Create State HTC With $30 Million Annual Cap

Wednesday, February 14, 2024 - 11:54AM

Legislation introduced in the Arizona House of Representatives would create a state historic tax credit (HTC) worth 20% of qualified rehabilitation expenditures, with a 5% bonus for a certified affordable housing property. H.B. 2879 would create credits to be awarded through a competitive process, with awards announced twice a year. The first round would award 60% of the annual cap to properties in cities with population of less than 100,000 and the second round would award the remainder to properties anywhere in the state. There would be a $30 million annual cap beginning with taxable years beginning on or after Dec. 31, 2024, with a sunset date of Dec. 31, 2034.

The Novogradac Historic Rehabilitation Handbook provides an overview of the HTC and the intricacies of the federal and state versions of the incentive.

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