Lawmaker to Examine Redevelopment Incentives

A 20 percent tax credit under the Federal Historic Preservation Tax Incentives program is currently the only financial incentive available for qualified redevelopment projects in Arkansas.

This is the incentive that both Arvest Bank and Fort Smith developer Richard Griffin used for their projects on Garrison Avenue in downtown Fort Smith.

But buildings in Fort Smith aren’t the only thing undergoing redevelopment.

Arkansas Rep. Tracy Pennartz of Fort Smith co-sponsored House Bill 2259 during the 86th General Assembly, which proposed a state tax credit for the rehabilitation of historic structures in Arkansas.

However, because the bill came late in the session, Pennartz and other sponsors didn’t have time to iron out some problems with the language.

Pennartz will introduce a revised proposal for a 25 percent state historic tax credit during the legislative session that will convene in January.

Pennartz also plans to look at a tax incentive for buildings within Central Business Improvement Districts that may not be on the National Historic Register or within a designated historic district.

“With the downturn in the economy, I think we need to try to give our private business sector incentives to invest in our downtown areas and our main street areas. So that’s something I’m looking at,” Pennartz said.