Landowners Along U.S.-Mexico Border Could See Tax Breaks Under New Bill in Arizona

Race Day Live (Phoenix, AZ) – An Arizona measure would provide a tax credit to help build new obstacles along the US-Mexico border in Arizona.

House Bill 2053 would grant landowners along the border a state tax credit for the “fair market value” of a parcel of land sold to the federal government.

According to the bill’s proponent, Rep. Alex Kolodin (R-Scottsdale), the law will prevent eminent domain difficulties.

“This bill will help the GOP fulfill its mandate from the American people to secure our border,” Kolodin said in a statement to The Center Square. “It incentivizes private landowners to allow the federal government to use their land for border wall construction avoiding the costly, time consuming, and involuntary eminent domain process.”

The proposal comes as President-elect Donald Trump promises to restart work on the wall, which President Joe Biden halted at the start of his government in 2021, with only a few exceptions since then.

“If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant’s income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years’ income tax liability,” according to the law.

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Since Biden assumed office, the Grand Canyon State has served as a hub for illegal crossings, and major holes in the physical border still exist. Proponents of finishing the wall believe that it is an essential tool and deterrent to illegal immigration and cartel activities, while critics doubt its effectiveness and environmental effects.

An asylum claims cap Executive Order issued by Biden last year resulted in a decline in overall crossings, but critics contend that the harm had already been done by years of more open border policies than Trump.

According to US Customs and Border Protection data, approximately 565,000 persons unlawfully entered Arizona through the Tucson and Yuma sectors in fiscal year 2024.

If the law passes the Republican-majority legislature, it is unclear if Democratic Gov. Katie Hobbs will sign or veto it.

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