Historic Credits

There is a federal Historic Tax Credit program that encourages private-sector investment in renovating and reusing historic properties.  20% of the funds spent on renovating an income-producing, historic building may be counted.  Including are the expenditures spent for the historic aspects of a building and usually include structural repairs, mechanical upgrades, and the addition of permanent fixtures.  Elements such as additions and landscaping are not usually included.

In Arkansas, there is a 25% tax credit available for funds spent on either income-producing or owner-occupied historic properties.  A minimum of $25,000 must be spent.

There are other incentives available such as Preservation Easements, rebates on energy-efficient mechanical systems such as on-demand hot water heaters, and, on occasion, there are small grant programs.

Arkansas Historic Tax Credits

For more information, refer to these sources:

IRS  https://www.irs.gov/businesses/small-businesses-self-employed/tax-aspects-of-the-historic-preservation-tax-incentives-faqs

NPS  https://www.nps.gov/tps/tax-incentives.htm 

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