Arkansas · Investment · AR-ARKPLUS-001
ArkPlus Income Tax Credit
Publication revised September 24, 2026. Sourcebook page 39.
Credit amount / calculation
Generally 10% of qualifying investment, subject to investment/payroll thresholds and pre-project agreement.
Business fit and eligible activity
Large qualifying manufacturing expansions can receive a credit based on qualified investment after a financial-incentive agreement. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Eligibility and practical use
The Executive Director awards this incentive at discretion. A project must satisfy both investment and new-payroll thresholds for its county tier, with investment reached within four years and payroll within 24 months of the agreement.
Illustrative business benefit
A sawmill invests $1.20 million in qualifying production machinery. At 10%, the nominal credit is $120,000 before annual caps, tax-liability limits, carryforward rules, or negotiated adjustments. The company should isolate eligible machinery from buildings, vehicles, land, and other costs that the statute does not treat the same way.
Timing / first action
Seek approval before signing a purchase order, contract, lease or other binding commitment. Confirm the exact point at which a purchase order, contract, lease, or other binding commitment would make the project ineligible.
Official sources
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