AR SB518

Establishes a new category called "qualified community reinvestment project" for rehabilitation of historic lodging facilities built before 1940 with more than 6 floors, projected qualified rehabilitation expenses exceeding $30,000,000, and at least 10,000 square feet of meeting and event space.

Requires qualified community reinvestment projects to receive a positive cost-benefit analysis from the Arkansas Economic Development Commission and approval from the Director of the Department of Arkansas Heritage by July 30, 2020.

Allows qualified community reinvestment projects to receive 25% of total qualified rehabilitation expenses as tax credits without the expense caps applied to other projects, but limits issuance to $5,000,000 per project per fiscal year with carryover provisions.

Excludes qualified community reinvestment project tax credits from the standard $4,000,000 annual cap on historic rehabilitation income tax credits, allowing the Director to suspend new applications for other projects if a qualified community reinvestment project significantly increases allocated credits.

Permits qualified community reinvestment project owners to incur rehabilitation expenses over a period established by agreement with the department, with effectiveness for tax years beginning January 1, 2019 or later.