State Credit Name: The state of Arkansas offers 4 different credits for research and development:

1. In-House Income Research Tax Credit
2. In-House Research by a Targeted Business Tax Credit
3. Research and Development in Area of Strategic Value Tax Credit
4. University Based Research and Development Tax Credit

Expiration Date: Indefinite

Who Can Apply? Corporations and flow-through entities

Credit Carry Forward: Unused credit in each incentive can be carried forward for 9 years.

About the Credit: 

1. In-House Research Income Tax Credit: Qualified companies that conduct “in-house” research that are eligible for the federal R&D credit may qualify for the Arkansas In-House R&D Credit. The credit rate is 20% of QRE’s that surpass the base year, for a period of 3 years and the incremental increase in QRE’s for the following two years.  For a start-up in-house research facility, the base year is zero, meaning the first 3 years following the date of the financial incentive agreement, all eligible expenditures can qualify for the credit.
2. In-House Research by a Targeted Business Tax Credit: Under the authority of the AEDC Executive Director, a targeted business may be granted income tax credits equal to 33% of the QRE’s incurred each year for up to five years. The application for this credit must include a project plan, the expenditures plan, the start and end dates of the project and an estimated total project costs. QRE’s are made up of in-house expenses for taxable wages paid and supplies used in the conduct of qualified research. The QRE’s must pass the federal 4-part test to qualify. Income tax credit for R&D earned by targeted businesses may be sold.
3. Research and Development in Area of Strategic Value Tax Credit: This credit is for qualifying business that invest in:
   • in-house research in an area of strategic value, meaning research in fields having long-term economic or commercial value to the state, and that have been identified in the R&D plan approved from time to time by the Board of Directors of the Arkansas Science and Technology Authority; or
   • a research and development project offered by the Arkansas Science and Technology Authority.
4. University Based Research and Development Tax Credit: A qualifying business that contracts with at least one     Arkansas college or university conducting R&D may qualify for a 33% income tax credit for QRE’s.

Notes: Each credit can offset 100% of a taxpayer’s tax due in a given year.

Click here to find out if you qualify for the federal research credit.

#SRArkansas Tweets

Contact your local Swanson Reed office to speak with a representative in your area today. 

 

T: (501) 588-0500
F: (512) 256-8157

[mk_padding_divider size=”80″]

[mk_icon_box2 icon_size=”32″ icon=”mk-moon-users-4″ icon_color=”#ffffff” icon_background_color=”#0f5885″ icon_border_color=”#0f5885″ icon_hover_color=”#ffffff” icon_hover_background_color=”#006cd8″ icon_hover_border_color=”#006cd8″ title=”Why Swanson Reed” title_size=”18″ title_weight=”normal” title_color=”#222222″ title_top_padding=”20″ read_more_url=”http://www.swansonreed.com/about-us/” animation=”left-to-right”]

[/mk_icon_box2]

[mk_icon_box2 icon_size=”32″ icon=”mk-moon-signup” icon_color=”#ffffff” icon_background_color=”#0f5885″ icon_border_color=”#0f5885″ icon_hover_color=”#ffffff” icon_hover_background_color=”#006cd8″ icon_hover_border_color=”#006cd8″ title=”Are You Eligible?” title_size=”18″ title_weight=”normal” title_color=”#222222″ title_top_padding=”20″ read_more_url=”http://www.swansonreed.com/rd-tools-training/are-you-eligible/” animation=”left-to-right”]

[/mk_icon_box2]

[mk_icon_box2 icon_size=”32″ icon=”mk-moon-calculate” icon_color=”#ffffff” icon_background_color=”#0f5885″ icon_border_color=”#0f5885″ icon_hover_color=”#ffffff” icon_hover_background_color=”#006cd8″ icon_hover_border_color=”#006cd8″ title=”Calculate Your Benefit” title_size=”18″ title_weight=”normal” title_color=”#222222″ title_top_padding=”20″ read_more_url=”http://www.swansonreed.com/rd-tools-training/rd-calculator/” animation=”right-to-left”]

[/mk_icon_box2]

[mk_icon_box2 icon_size=”32″ icon=”mk-moon-calendar-5″ icon_color=”#ffffff” icon_background_color=”#0f5885″ icon_border_color=”#0f5885″ icon_hover_color=”#ffffff” icon_hover_background_color=”#006cd8″ icon_hover_border_color=”#006cd8″ title=”Know Your Deadline” title_size=”18″ title_weight=”normal” title_color=”#222222″ title_top_padding=”20″ read_more_url=”http://www.swansonreed.com/rd-tax-credit-filing-deadline-extension-calculator/” animation=”right-to-left”]

[/mk_icon_box2]

[mk_icon_box2 icon_size=”32″ icon=”mk-moon-user-7″ icon_color=”#ffffff” icon_background_color=”#0f5885″ icon_border_color=”#0f5885″ icon_hover_color=”#ffffff” icon_hover_background_color=”#006cd8″ icon_hover_border_color=”#006cd8″ title=”For Accountants” title_size=”18″ title_weight=”normal” title_color=”#222222″ title_top_padding=”20″ read_more_url=”http://www.swansonreed.com/for-accountants/” animation=”right-to-left”]

[/mk_icon_box2]

[mk_icon_box2 icon_size=”32″ icon=”mk-moon-folder-6″ icon_color=”#ffffff” icon_background_color=”#0f5885″ icon_border_color=”#0f5885″ icon_hover_color=”#ffffff” icon_hover_background_color=”#006cd8″ icon_hover_border_color=”#006cd8″ title=”Industry Case Studies ” title_size=”18″ title_weight=”normal” title_color=”#222222″ title_top_padding=”20″ read_more_url=”http://www.swansonreed.com/case-study/” animation=”right-to-left”]

[/mk_icon_box2]

[mk_padding_divider size=”120″]