State historic tax credit programs

Arkansas Historic Rehabilitation Income Tax Credit Act

Program overview:

The Arkansas Historic Rehabilitation Income Tax Credit Act offers a 25 percent credit for certified rehabilitation of eligible income and non-income producing properties.

Annual cap:
$4 million in 2021
$8 million from 2022 on

Program details:

  • Income-producing properties that start before July 1, 2017, can claim a 25 percent credit on up to $500,000 in qualified rehabilitation expenses.
  • Income-producing properties that start July 1, 2017 or later can claim a 25 percent credit on up to $1.6 million in qualified rehabilitation expenses.
  • Non-income producing properties can claim a 25 percent credit on up to $100,000 in tax credits.
  • Credit only allowed one time for each eligible property in a 24-month period.
  • Applications are prioritized by the following selection criteria: result in the creation of a new business; result in the expansion of an existing business; establish or contribute to the establishment of a tourism attraction as defined by the Department of Parks and Tourism; contribute to the revitalization of a specific business district; be a key property in the revitalization of a specific neighborhood.
  • Recapture: same as federal
  • Sunset date: Dec. 31, 2037.

Who can use the credit?

The commercial credit is freely transferable by either direct sale or disproportionate allocation among partners of a syndication partnership.

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