Arkansas Code of 1987 (2023) › Title 26 - TAXATION (§§ 26-1-101 — 26-82-119) › Subtitle 5 - STATE TAXES (§§ 26-50-101 — 26-65-108) › Chapter 51 - INCOME TAXES (§§ 26-51-101 — 26-51-2804) › Subchapter 26 - ARKANSAS MAJOR HISTORIC REHABILITATION INCOME TAX CREDIT ACT (§§ 26-51-2601 — 26-51-2607) › Section 26-51-2603 - Arkansas major historic rehabilitation income tax credit

(a)
(1)
There is allowed an income tax credit up to the amount of tax imposed by this chapter or the premium tax to a holder of an Arkansas major historic rehabilitation income tax credit.
(2)
The income tax credit allowed under subdivision (a)(1) of this section is allowed only one (1) time in a two-year period for each eligible property.
(b)
The Arkansas major historic rehabilitation income tax credit shall be in an amount equal to twenty-five percent (25%) of the total qualified rehabilitation expenses incurred by the owner to complete a certified rehabilitation.
(c)
(1)
The Division of Arkansas Heritage shall not issue Arkansas major historic rehabilitation income tax credits for more than the amount certified under §
19-5-1150(c)(1)(A)
.
(2)
Any unused Arkansas major historic rehabilitation income tax credits shall not be carried over to the following fiscal year for use by the division.
(3)
Any certification of completion that would cause the Arkansas major historic rehabilitation income tax credit to exceed the amounts listed in subdivision (c)(1) of this section during the fiscal year shall be carried forward for consideration during the following fiscal year.
(d)
The Arkansas major historic rehabilitation income tax credit shall be available to an owner of an eligible property that:
(1)
Completes a certified rehabilitation that is placed in service after January 1, 2019;
(2)
Has a minimum investment of one million five hundred thousand dollars ($1,500,000) in qualified rehabilitation expenses; and
(3)
Is not receiving a tax credit under any other state law for the same eligible property.
(e)
Upon completion of a rehabilitation, the owner shall submit documentation required by the division to verify that the completed rehabilitation qualifies as a certified rehabilitation.
(f)
If the division determines that a rehabilitation qualifies as a certified rehabilitation and that the certified rehabilitation is complete, the division shall issue a freely transferable certification of completion specifying the total amount of the qualified rehabilitation expenses and Arkansas major historic rehabilitation income tax credit allowed.
(g)
(1)
If the owner requests a review of the division's determination under subsection (f) of this section, the owner shall submit a written request for review of the determination.
(2)
The owner shall submit the request in writing to the division within thirty (30) days of the date of notification to the owner of the determination.
(h)
(1)
The owner shall certify to the division the validity of the costs and expenses claimed as qualified rehabilitation expenses and shall maintain a record supporting the claim for at least five (5) years after the issuance of the certification of completion.
(2)
An owner's record supporting a claim for qualified rehabilitation expenses may be reviewed by the division, the appropriate tax collection authority, or a holder.
Added by Act 2019, No. 855,§ 2, eff. 7/24/2019.