State R&D Tax Credits

Arkansas

Credit Name: Several Research and Development Credits:

• R&D with Universities
• In-House Research Income Tax Credit
• In-House Research by Targeted Business Income Tax Credit
• In-House Research of Strategic Value Income Tax Credit

Expiration Date: 5 years per contract on #1-3

Does it apply to C corps and pass-through entities?: Yes

Credit Carry forward: #4-9 years

Description: 4 scenarios:

• R&D w/Universities. Company doing R&D with a school and is eligible for a 33% credit on those expenses.
• In-house Research Income Tax Credit. Company is doing IR&D and may apply for a credit of 10% of expenditures, up to $10,000 per year.
• In-house Research by a Targeted Business Income Tax Credit. Company is eligible for Credit and must file for status as “Targeted Business” and is eligible for income tax credits up to 33% during first 5 years of agreement.
• In-house Research Area of Strategic Value Income Tax Credit. Company applies for designation, gets 33% of QREs up to $50,000. Limited to 50% of liability.

Other Notes: Very Complex