Arizona offers federal tax incentives for historic property renovations to boost economic development

During the San Luis Economic Development Commission meeting on January 29, 2025, city officials discussed the importance of property listing on the historic register and the associated federal income tax incentives. The meeting highlighted how these incentives can significantly benefit property owners, particularly those interested in undertaking major renovation or rehabilitation projects.

A key point raised was that properties listed on the register could qualify for a rebate of up to 20% on income taxes over five years. This financial incentive aims to encourage property owners to invest in their properties, ultimately enhancing the community's historical and cultural landscape. However, the process to achieve this listing can be complex, requiring careful navigation of regulations and requirements.

The discussion also touched on successful economic development initiatives in Arizona, with a specific mention of Cottonwood, which became a Certified Local Government (CLG) in 2014. Cottonwood has established its own Register of Historic Places, showcasing the potential benefits of historic preservation efforts.

The meeting underscored the unique position of San Luis in promoting economic development through historic preservation. By leveraging federal incentives and learning from successful models like Cottonwood, San Luis aims to foster growth while maintaining its cultural heritage. As the city moves forward, the focus will remain on encouraging property owners to consider the advantages of listing their properties, which could lead to revitalization and economic benefits for the community.