Downtown development bill dies in Arkansas Senate

A bill that would create 20% tax credit for new construction and renovation in a central business improvement district was defeated Monday (April 6) in the Arkansas Senate committee on Revenue & Taxation.

HB 1060, sponsored by Rep. Tracy Pennartz, D-Fort Smith, would create an investment tax credit for renovation and development in central business improvement districts in Arkansas. The investment tax credit would be equal to 20% of the first $1 million of qualified rehabilitation or development expenditures incurred for a qualified project. The bill allows for up to $10 million in tax credits to be allowed annually.

The bill was approved last week by the Arkansas House — 94 members of the 100-member body voted for the bill — and has received active lobbying support from the heads and members of more than 60 chamber, city and trade associations.

However, Gov. Mike Beebe opposed HB 1060 because of the $10 million potential hit on state revenue.