Preservation-related legislation from the Regular Session of the 93rd General Assembly:
|Preserve Arkansas and the Quapaw Quarter Association are working with Rep. Joe Jett and Sen. Jonathan Dismang to improve the Arkansas Historic Rehabilitation Tax Credit with legislation introduced yesterday. HB1555 would increase the annual State HTC cap from $4 million to $10 million per fiscal year.
This bill would also extend the HTC program sunset from 2027 to 2037 and allow the Division of Arkansas Heritage to use fees collected by the Division under the Arkansas Historic Rehabilitation Income Tax Credit Act to support personnel who administer the program.
Arkansas historic rehabilitation projects have depleted the annual allocation of $4 million in State Historic Tax Credits the past two fiscal years. In fact, the full allocation of $4 million was used up on the first day of FY21, and projects are waiting for the FY22 allocation. There is a demonstrated need to increase the annual cap.
The State Historic Tax Credit is an important financial incentive for the rehabilitation of our historic buildings. It leverages private investment, creates jobs, enhances communities, and preserves our heritage.
In addition to Arkansas’s statewide network of downtown revitalization organizations, the Arkansas Municipal League, Association of Arkansas Counties, and Arkansas Realtors Association support this legislation.
We need your help!
The State HTC is economic development for Arkansas – just check out the statistics below, courtesy of the economic impact study commissioned by the Arkansas Historic Preservation Program last year.
Since the program began in 2009:
- Arkansas has awarded $21.5 million in tax credits, resulting in $224 million in private investment
- 342 historic buildings in 24 cities have been rehabilitated
- Arkansas has seen increased use of the federal historic tax credit by 58%, meaning more money stays in Arkansas instead of going to the federal coffers
- In 2019, for every $1 in tax credit awarded by the State, the private sector made an investment of nearly $18
- Every $1 million invested in a historic rehabilitation project generated $708,700 in additional economic activity in Arkansas
- Based on the average amount of investment each year since the tax credit was implemented, the projects have generated:
- 175.6 direct jobs
- $7,141,694 direct income
- 133 indirect jobs
- $4,709,586 indirect and induced income