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New law increases state tax credits for historic rehabilitation

Arkansas Historic Preservation Program - Monday, April 24, 2017

One of Arkansas’s best incentives for the restoration of historic properties in the state just got better with the Arkansas General Assembly’s passage of Act 393 of 2017.

The new law increases the amount of state tax credits available for certified rehabilitation projects on eligible properties that are listed on the National Register of Historic Places or that contribute to National Register historic districts. Originally, owners could claim an income tax credit of 25 percent of the first $500,000 of eligible expenses ($125,000) when rehabilitating an income-producing property. After July 1, 2017, owners will be able to claim an income tax credit of 25 percent of the first $1.6 million of eligible expenses ($400,000) on the certified rehabilitation of an income-producing property.

“Act 393 will increase our ability to work with both business and private owners of historic properties and create more opportunities for significant restoration projects,” Department of Arkansas Heritage Director Stacy Hurst said. “These types of historic preservation projects generate economic activity and spur community revitalization. We look forward to increased rehabilitation activity across the state as a result of this change.”

To learn more about the Arkansas historic preservation tax credit program, as well as the 20-percent federal tax credit program, visit ArkansasPreservation.com or contact [email protected]

Since the state historic preservation tax credit was created in 2009, 332 projects, representing $137,088,704 in private investment, have received a total of $17,155,594 in credits through the program.