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
Related programs
Advantage Arkansas Income Tax Credit
Credit based on new qualifying payroll at the applicable
Job-creation credit for qualifying businesses, including manufacturers, with thresholds varying by location.
Apprenticeship Tax Credit
Per-apprentice credit subject to certification
Registered apprenticeship can create a modest credit for forest-products employers.
Arkansas Wood Energy Products and Forest Maintenance Credit
20% of qualifying wood-energy equipment costs for tax years
Rare forest-specific credit for very large projects producing qualifying wood-energy products from forest residues.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.