To Amend The Arkansas Historic Rehabilitation Income Tax Credit Act; And To Increase The Maximum Amount Of Arkansas Historic Rehabilitation Income Tax Credits That May Be Issued In A Fiscal Year.
Impact
The bill is expected to significantly enhance the availability of financial incentives for developers and property owners undertaking rehabilitation projects on historic buildings. Increased tax credits could lead to a surge in restoration activities, potentially boosting local economies, creating jobs, and attracting tourism. These efforts are aimed at preserving Arkansas's cultural heritage while also providing economic benefits through renovated properties that might serve as commercial spaces or tourist attractions.
Summary
Senate Bill 460 aims to amend the Arkansas Historic Rehabilitation Income Tax Credit Act by raising the annual limit on the tax credits that can be issued for the rehabilitation of historic properties. Currently, the maximum amount set is $4 million per fiscal year, which will be increased to $8 million starting in fiscal year 2022, and ultimately to $15 million beginning in fiscal year 2024. This change is intended to encourage investment in historic preservation efforts throughout the state, fostering economic growth and revitalization in communities.
Contention
Opposition to SB460 may arise from concerns about the state's budget and whether the increased tax credits could lead to an unsustainable financial burden. Some lawmakers may question the priorities in funding historic preservation versus other pressing needs such as education or infrastructure. Advocates for historic preservation, however, argue that revitalizing historic properties can lead to long-term economic benefits that far outweigh any initial costs. The debate may center on finding a balance between preserving Arkansas's heritage and ensuring fiscal responsibility.