Arkansas R&D Tax Credits
Find out if you qualify for R&D tax credits in California and recharge your business
Arkansas provides a research and development credit. Arkansas’s Research and Development programs are intended to provide incentives for university-based research, in-house research, and R&D in qualified start-up businesses. Tax credits under these programs can offset up to 100% of a business’ tax liability in a given year.
Research Park Support Donation Credit: A credit is available for Donation Made To An Accredited Institution of Higher Education To Support A Research Park. The amount of the credit is 33% of a qualified donation made to an accredited institution of higher education to support a research park authority.
In-House Research Income Tax Credit: A business that conduct "in-house" research within a research facility that is operated by the eligible business may claim a credit equal to 20% of the amount spent on in-house research that exceeds the base year for a period of three years and the incremental increase in qualified research expenditures for the succeeding two years.
In-House Research by Targeted Business Income Tax Credit: A credit is available for or qualified research expenditures incurred in connection with a financial incentive agreement with the Economic Development Commission. The amount of the credit is 33% of qualified research expenditures for each of the first five years of the financial incentive agreement.
In-House Research in Area of Strategic Value Income Tax Credit: A taxpayer who invests in in-house research in an area of strategic value; or a project under the research and development programs offered by the Arkansas Science and Technology Authority and approved by its Board of Directors may claim a credit equal to 33% of qualified research expenditures for each of the first five years of the financial incentive agreement.
Learn more about Arkansas' R&D Tax Credits and Incentives here.
R&D Tax Credit Available:
C-Corporation, S-Corporations, LLCs, Partnerships
Deadline for Tax Filing:
Data Required to Compute Credit:
Claim Period Arkansas Qualified R&D Expenses (QREs)
The R&D tax credit equals:
- 10% of QREs (In-House R&D)
- 33% of QREs incurred each year, for up to five years (In-House Research by a Targeted Business, Research and Development in Area of Strategic Value, and University Based R&D)
Specific Items to Note:
- The income tax credit for research by a targeted business may not be used with other in-house R&D incentives or any other incentive in Act 182 of 2003 for the same expenditures.
- The maximum credit that can be earned by a business is $10,000 per tax year and is equal to 20% of QREs.
- Credits can be claimed for up to 100% of the tax liability.