Forest ProductsTax Credit Sourcebook

Arkansas · research and development · AR-RD-002

AR-RD-002

Publication revised September 24, 2026. Sourcebook page 43.

Credit amount / calculation

33% of approved qualified research expenditures, limited to $50,000 per tax year.

Business fit and eligible activity

Potentially larger research credit for a project certified as strategically valuable. Qualified research activity. Ordinary production, routine quality control and an equipment purchase alone do not qualify.

Eligibility and practical use

Eligible research can take place at a wood-products business. The credit applies to qualifying research expenses, not the purchase price of production equipment. Obtain approval for the research project and document the work and eligible costs.

Illustrative business benefit

$200,000 of approved expenses x 33% = $66,000 before the cap. The annual claim is limited to $50,000; confirm the treatment of any unused certified credit under the nine-year carryforward rules.

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.

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