There are several financial incentive programs available through the Federal Government and the State of Arkansas. There are three main programs, one federal and two state.
To learn more about the minimum investment and other eligibility requirements, please visit the National Park Service website.
Arkansas has two state programs that are managed by the Heritage Division of the Arkansas Department of Parks, Heritage, and Tourism. You can earn Federal Tax Credits independently, or in addition to either state program. An applicant may earn a state tax credit under one of the two state programs, but not both. The tax credit recipient cannot receive a tax credit under any other state law for the same eligible property.
The table shows the amount of credit available by city population. Max Earned Credit is calculated based on the maximum $100,000 credit claim.
| City Population | Tax Credit | Max Credit Earned |
|---|---|---|
| Above 50,000 | 30% | $30,000 |
| Below 50,000 | 35% | $35,000 |
| Below 10,000 | 40% | $40,000 |
| Outside City Limits | 25% | $25,000 |
The table shows the amount of credit available by city population. Max Earned Credit is calculated based on the maximum $1.6 million credit claim.
| City Population | Tax Credit | Max Credit Earned |
|---|---|---|
| Above 50,000 | 30% | $480,000 |
| Below 50,000 | 35% | $560,000 |
| Below 10,000 | 40% | $640,000 |
| Outside City Limits | 25% | $400,000 |
This program is for larger projects with a minimum budget of $1.5 million and is capped at $48 million worth of eligible expenses for a maximum credit of $12 million per project.
The Major Rehabilitation Tax Credit Program was created in 2019, but was not funded until 2023 by Governor Sanders with a $40 million allocation. New rules provide for a bi-annual review for Application for Funding Allocation. This allows projects to reserve funds for a set period to ensure they are available upon completion of a major project.
| Max Credit Claim | Tax Credit | Max Credit Earned |
|---|---|---|
| $48 million | 25% | $12 million |