Arkansas · Forest-Specific / Biomass · AR-WOOD-001
Arkansas Wood Energy Products and Forest Maintenance Credit
Publication revised September 24, 2026. Sourcebook page 40.
Credit amount / calculation
20% of qualifying wood-energy equipment costs for tax years beginning January 1, 2026 or later; certification and an incentive agreement are required.
Business fit and eligible activity
Rare forest-specific credit for very large projects producing qualifying wood-energy products from forest residues. Qualifying production, feedstock or energy technology; ordinary wood residuals are not automatically eligible.
Eligibility and practical use
Act 709 raises the new-project threshold to investment exceeding $1 billion and at least 400 net new employees averaging $60,000 annually. Qualifying expansion projects have separate rules. Highway-licensed vehicles and trailers are excluded; other mobile equipment still must meet the exclusive-use and project tests.
Illustrative business benefit
Within an otherwise qualifying, state-certified project, $10 million of eligible equipment produces a nominal $2 million credit at 20%. A $10 million standalone project does not satisfy the new-project investment threshold.
Timing / first action
Seek approval before signing a purchase order, contract, lease or other binding commitment. Confirm whether the project qualifies under the new-project or expansion-project definition before applying the 20% rate.
Official sources
- Arkansas General Assembly - Act 709 of 2025, effective for tax years (arkansasedc.com)
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