Arkansas State R&D Tax Credit with Universities
A business that contracts with one or more Arkansas colleges or universities in performing research may qualify for a 33% income tax credit as authorized by ACA 26-51-1102(b) for qualified research expenditures. The income tax credit may be carried forward for three (3) years beyond the year in which the credit was earned. In order to qualify for the income tax credit for research and development with universities, an eligible business must submit an application and project plan to the Arkansas Economic Development Commission. The Arkansas Science and Technology Authority will review the application for approval.
How to Obtain the Credit?
An eligible business must submit an application and project plan to the Arkansas Economic Development Commission. The Arkansas Science and Technology Authority will review the application for approval. To claim the credits authorized, attach to the tax return a copy of the Certificate of Tax Credit issued by the Arkansas Science and Technology Authority.
Refundable/Transferable Tax Credit – No
Carry Forward
Effective July 31, 2007 Act 1607 of 2007 changed the carry forward to nine (9) years and increased the use of the credit from 50% to 100% of the net tax due after all other credits.
How to Obtain the Credit?
The taxpayer must apply to the Arkansas Economic Development Commission in order to qualify for the income tax credit. To claim the credits authorized, attach to the tax return a copy of the Certificate of Tax Credit issued by the Arkansas Science and Technology Authority.
Refundable/Transferable Tax Credit – No
Carry Forward
Effective July 31, 2007 Act 1607 of 2007 changed the carry forward to nine (9) years in which the credit was first earned.
How to Obtain the Credit?
To claim the credits authorized, attach to the tax return a copy of the Certificate of Tax Credit issued by the Arkansas Science and Technology Authority.
Refundable/Transferable Tax Credit – Yes
In-House Research Income Tax Credit
Eligible businesses that conduct “in-house” research within a research facility that is operated by the eligible business can apply for this income tax credit equal to twenty-percent (20%). The income tax credit may be used to offset one hundred percent (100%) of an eligible business’s annual income tax liability. The maximum credit that can be earned by each qualified business shall not exceed $10,000 per tax year.
How to Obtain the Credit?
To claim the credits authorized, attach to the tax return a copy of the Certificate of Tax Credit issued by the Arkansas Science and Technology Authority.