Arkansas In-House Research and Development Tax Credit

Program Overview

Arkansas structures its research incentives around several programs under the Consolidated Incentive Act. The in-house research credit rewards qualifying companies for increases in research spending, while separate programs support research conducted in partnership with Arkansas colleges and universities and research performed by businesses in state-designated target sectors, such as advanced materials, biotechnology, and information technology. Most programs require an incentive agreement to be executed before qualifying expenditures are made.

Eligibility

• Businesses approved by the Arkansas Economic Development Commission may qualify for applicable research incentives.
• Qualifying research activities must be conducted in Arkansas.
• Targeted-business and university-research programs have separate certification and eligibility requirements.
• Additional requirements may apply depending on the specific research incentive program.

Benefits

• Provides a credit against Arkansas income tax liability.
• Targeted-business credits may be transferable or sold, subject to applicable requirements.
• The ability to transfer or sell qualifying credits may provide a cash benefit to pre-revenue companies.