There is a federal Historic Tax Credit program that encourages private-sector investment in renovating and reusing historic properties. 20% of the funds spent on renovating an income-producing, historic building may be counted. Including are the expenditures spent for the historic aspects of a building and usually include structural repairs, mechanical upgrades, and the addition of permanent fixtures. Elements such as additions and landscaping are not usually included.
In Arkansas, there is a 25% tax credit available for funds spent on either income-producing or owner-occupied historic properties. A minimum of $25,000 must be spent.
There are other incentives available such as Preservation Easements, rebates on energy-efficient mechanical systems such as on-demand hot water heaters, and, on occasion, there are small grant programs.
For more information, refer to these sources: