Historic Tax Credits

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Renovating a historic property Arkansas has never been more lucrative.  With the 20% federal Historic Rehabilitation Tax Credit and the tiered state Historic Tax Credit ranging from 30% to 40%, developers and home owners can make improvements to their properties or develop entire complexes with added benefits.

The federal Historic Tax Credit was created in 1976.  It has leveraged more than $235 billion in private investment across the country.  This Historic Tax Credit is for income-producing properties.  These properties include apartment complexes, office buildings, commercial properties, institutional buildings, and industrial sites.  Historic Tax Credits can be taken on 20% of the approved expenditures.  This includes hundreds of properties in Arkansas that are listing in the National Register of Historic Places.

The Arkansas Historic Tax Credit program, created in 2009 was increased in 2023 with a tiered program to give greater incentive, specially in smaller towns. Projects in incorporated communities of less than 10,000 people will receive a 40% credit. Those in communities of 10,000 to 50,000 in population will get a 35% credit. Projects in cities of more than 50,000 will receive a 30% credit on the rehabilitation of historic properties.  This program is meant to supplement the federal program, plus it gives added incentives to home owners. The cap per project on the amount that can be claimed is $400,000 on income-producing properties. The cap for private residences on the Historic Tax Credits under the Arkansas program is $25,000, while the minimum amount of expenditure is $5,000.

The Arkansas Major Historic Rehabilitation Tax Credit is for projects with at least $1.5 million in qualified expenses.