SB461

Senate Bill 461 amends the Arkansas Historic Rehabilitation Income Tax Credit Act. The bill changes the structure of the tax credit for qualified rehabilitation expenses starting in fiscal year 2024. Under current law, the credit is set at 25% of qualified expenses up to specific caps for income-producing and non-income-producing properties. This bill replaces that flat rate with a tiered percentage structure based on the population of the city where the project is located. Projects in cities with populations under 10,000 will receive a 40% credit, projects in cities with populations between 10,000 and 50,000 will receive a 35% credit, and projects in cities with populations over 50,000 will receive a 30% credit. The bill maintains the existing caps on the amount of qualified rehabilitation expenses eligible for the credit.