Arizona Historic Property Tax Credits
Yes, Arizona offers tax incentives for rehabilitating historic properties through both commercial and non-commercial programs:
Commercial Historic Property Tax Credit
- Provides up to 20% of rehabilitation costs as a state tax credit
- Property must be listed on the National Register of Historic Places
- Minimum investment of $50,000 required
- Work must meet Secretary of Interior’s Standards
- Credit can be carried forward for up to 10 years
Non-Commercial Historic Property Tax Credit
- Offers up to 25% of rehabilitation costs for owner-occupied properties
- Maximum credit of $25,000 per project
- Property must be listed on Arizona State Historic Property Tax Program
- Minimum investment of $5,000 required
- Work must be pre-approved by State Historic Preservation Office
Frequently Asked Questions
Q: How do I apply for these credits?
A: Applications must be submitted to the Arizona State Historic Preservation Office before work begins.
Q: Can I combine state and federal historic tax credits?
A: Yes, qualifying projects can utilize both Arizona state and federal historic tax credits.
Q: What types of work qualify?
A: Structural repairs, roof replacement, window restoration, and other rehabilitation work that maintains historic character.
Q: How long does the approval process take?
A: Typically 30-60 days for initial review and approval of proposed work.
Q: Is there a deadline to complete the work?
A: Work must be completed within 24 months of approval unless an extension is granted.
Q: Do I need to use specific contractors?
A: While not required, it’s recommended to use contractors experienced with historic preservation.
Q: Can I claim credits for multiple properties?
A: Yes, you can claim credits for multiple qualifying properties, each with their own application.
The Bottom Line
Arizona’s historic property tax credits provide significant financial incentives for rehabilitating historic buildings, whether commercial or residential. However, careful planning and compliance with preservation standards are essential to successfully claim these credits. Consider consulting with preservation experts and tax professionals before starting your project.