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Committee lowers thresholds for 'Natural State' opportunity zones to attract small investors near state parks
Summary
Lawmakers agreed to reduce minimum investment amounts and expand qualifying area around designated state parks so small businesses can more easily claim tax incentives tied to the Natural State Initiative opportunity zones; agency witnesses said the change is meant to spur private investment around parks in underserved areas.
Representative John Maddox introduced changes to the Natural State Initiative (NSI) opportunity‑zone program that reduce the minimum investment needed to qualify in high‑unemployment areas and expand the geographic area that qualifies around selected state parks.
Catherine Andrews, director of the Arkansas Office of Outdoor Recreation, said the current threshold — a $250,000 minimum in high unemployment areas — is too high for many small businesses that want to invest near parks and trails. She said lowering the floor and increasing the zone around parks will make the incentives attainable for small entrepreneurs.
“By lowering the investment amount and increasing the area that qualifies, we think small business owners who want to open a bike shop, lodging or services near parks will be able to use the incentive,” Andrews said.
The program applies to four designated sites that were created under the original initiative: Pinnacle Mountain, Queen Wilhelmina, the Delta Heritage Trail and Petit Jean State Park. Agency witnesses said no firms have yet used the incentive and that the change is intended to produce interest from local entrepreneurs in areas with high unemployment.
Representatives said the program differs from the federal opportunity‑zone regime and that the bill simply broadens a state pilot to increase participation. The committee approved the change to advance the bill.
