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HB 2987

income tax credit; historic preservation

57th Legislature - Second Regular Session Introduced by Chris Mathis and 1 co-sponsor

Arizona bill creates income tax credit for historic building preservation projects to incentivize private restoration investment statewide.

House First Reading.
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WeVote Research Nonpartisan
Bill Summary · HB 2987

Legislative bill overview

HB 2987 would establish an income tax credit for taxpayers who undertake historic preservation projects in Arizona. The bill allows eligible individuals and businesses to claim a credit against their state income tax liability based on qualified expenses related to preserving historic structures. The credit aims to incentivize private investment in the restoration and maintenance of historically significant properties.

Why is this important

Historic preservation credits have proven effective in revitalizing older neighborhoods and downtown areas while generating economic activity through construction jobs and increased property values. By using tax incentives rather than direct government spending, the state can leverage private capital to maintain its architectural heritage and cultural assets. However, the fiscal impact depends entirely on the credit's structure—how much credit is allowed, what projects qualify, and whether there are spending caps.

Potential points of contention

  • Fiscal cost uncertainty: Without seeing the bill text, the actual revenue loss to the state is unclear; if generous, it could strain budgets; if too restrictive, it may not incentivize participation
  • Eligibility and fairness: Questions about which properties qualify as "historic," whether the credit favors wealthy property owners over modest homeowners, and geographic distribution across urban versus rural areas
  • Effectiveness debate: Whether tax credits are the most efficient policy tool compared to grants, low-interest loans, or direct subsidies for preservation work

Compiled from official sources — confirm details with the bill’s official record.

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