AR HB1118

Creates the Arkansas Central Business Improvement District Rehabilitation and Development Investment Tax Credit Act, providing a 20% tax credit on up to $1,000,000 of qualified rehabilitation or development expenditures in designated central business districts.

Requires projects to meet minimum $50,000 in expenditures, be completed within 18 months, obtain approval from the central business improvement district governing body, and comply with local zoning and building codes.

Establishes a two-step approval process: taxpayers apply for "qualified project" designation, then submit an eligibility certificate after project completion to claim the tax credit against Arkansas income tax.

Allows unused credits to carry forward for seven consecutive tax years and permits one-time transfer or assignment of credits to other taxpayers, with transferees able to offset up to 100% of their state income tax liability.

Effective for tax years beginning January 1, 2012 and expiring December 31, 2017, with emergency clause declaring the measure necessary due to economic recession and need for downtown revitalization and job creation.