Arkansas offers several credits that may reduce your tax liability or increase your refund. Some credits are entered directly through the Arkansas return, while others require supporting information or additional Arkansas forms.
Program Entry
Arkansas Return → Credits
State Political Contribution Credit
Select Begin to enter qualifying political contributions made to an Arkansas candidate, political party, or political action committee.
To qualify, the contribution must meet Arkansas requirements and be made to an eligible Arkansas political organization.
The credit is based on the amount of qualifying contributions made during the tax year.
Stillborn Child Tax Credit
Select Begin to enter information for the Arkansas Stillborn Child Tax Credit.
Taxpayers who experienced a stillbirth and meet Arkansas requirements may qualify for this credit.
Supporting documentation may be required to substantiate the credit.
Early Childhood Program (AR1000EC)
Select Begin to complete information related to the Arkansas Early Childhood Program Credit.
This credit is generally available to qualifying taxpayers who participate in approved early childhood education programs and meet Arkansas requirements.
Information entered in this section is used to complete Form AR1000EC.
Credit for Taxes Paid to Another State
Select Begin if you paid income tax to another state on income that is also taxed by Arkansas.
This credit helps prevent the same income from being taxed by both Arkansas and another state.
You may need information from:
- Another state's tax return
- Forms W-2
- Schedules K-1
- Other supporting tax documents
The allowable credit is generally limited to the lesser of:
- The tax paid to the other state; or
- The Arkansas tax attributable to that income
Business Incentive Credits
Select Begin to enter a qualifying Arkansas Business Incentive Credit.
Arkansas offers a variety of business incentive credits designed to encourage economic development, job creation, investment, research activities, education initiatives, tourism development, environmental improvements, and other qualifying business activities within the state.
BIC Code
Select the applicable Business Incentive Credit (BIC) Code from the drop-down menu.
Available credit types may include:
- Advantage Arkansas
- Affordable Housing
- AR Plus
- AR Plus 50% Technology-Based
- AR Plus 75% Technology-Based
- AR Plus 100% Technology-Based
- Child Care Facility
- Coal Mining Producing and Extracting
- Delta Geotourism
- Equipment Donation/Sale
- Equity Investment Incentive
- Existing Workforce Training
- Family Savings Initiative Act
- Historic Rehabilitation
- Low Income Housing
- Public Roads Incentive
- Research Park Authority
- Research and Development with Universities
- In-House Research Income Tax Credit
- In-House Research by Targeted Business Income Tax Credit
- In-House Research Area of Strategic Value Income Tax Credit
- Qualified Research
- Tourism Development
- Tuition Reimbursement Program
- Targeted Business Payroll
- Venture Capital Investment
- Waste Reduction, Reuse or Recycle Equipment
- Water Impounded Outside Critical Areas
- Water Impounded Within Critical Areas
- Water Surface Outside Critical Areas
- Water Surface Inside Critical Areas
- Water Surface Inside Critical-Industrial or Commercial Areas
- Water Land Leveling
- Wetland Riparian Zone Creation/Restoration
- Wetland Riparian Zone Conservation
- Central Business Improvement District Rehabilitation and Development
- Biodiesel Incentive
- Recycle Equipment for Steel Manufacturer
- Recycle-Steel Manufacturer Amendment 82 Project Act 862
- Recycle-Expansion Project Act 1046
- Recycle-Steel Manufacturing Specialty Products Facility Act $4M 1046
- Recycle-Steel Manufacturing Specialty Products Facility Act $5M 1046
- Recycle-Steel Manufacturing Specialty Products Facility Act $6.5M 1046
- Apprenticeship Program
- Major Historic Rehabilitation
- Arkansas Wood Energy Products and Forest Maintenance
- Railroad Modernization
- Motion Picture
- Retired Law Enforcement Cold Case
- Philanthropic Investment
- Waterways Investment
- National State Initiative (NSI) Tourism Development
- Sustainable Aviation Fuel
- Arkansas Wood Energy Products and Forest Maintenance Expansion
- Relocating Corporate Headquarters
- Modernization and Automation
Taxpayer
Select whether the credit belongs to the taxpayer or the spouse when filing a joint return
FEIN
Enter the Federal Employer Identification Number (FEIN) associated with the credit certificate, if applicable.
If the credit certificate was issued to an individual, leave the FEIN field blank.
Credit Amount
Enter the credit amount exactly as shown on the Arkansas credit certificate or supporting documentation.
How Does This Affect My Return?
Business Incentive Credits may:
- Reduce Arkansas income tax liability.
- Increase your Arkansas refund.
- Apply credits issued through Arkansas economic development programs.
- Claim credits earned through business investments, workforce development, research activities, housing projects, tourism initiatives, environmental programs, and other qualifying activities.
Disabled Dependents
Select Begin to enter information for qualifying disabled dependents.
Arkansas allows a credit for taxpayers who maintain and support a qualifying disabled dependent.
Disabled Dependent Credit
The credit is $500 for each qualifying disabled dependent.
Required Documentation
A completed Form AR1000-DD signed by a physician may be required when:
- Claiming the credit for the first time; or
- More than five years have passed since the credit was last claimed
The form may be uploaded through the return when required.
How Does This Affect My Return?
Credits entered in this section may:
- Reduce Arkansas tax liability.
- Increase your Arkansas refund.
- Reduce the amount of tax owed.
- Claim Arkansas-specific credits and incentives.
- Offset taxes paid to another state.
Notes
- Certain credits may require supporting schedules, certificates, or other documentation.
- Credit amounts may be limited by Arkansas law.
- Business Incentive Credits generally require a certificate or approval from an Arkansas-authorized program.
- If a Business Incentive Credit certificate is issued to an individual, leave the FEIN field blank.
- The Credit for Taxes Paid to Another State helps prevent double taxation of the same income.
- The Disabled Dependent Credit provides a $500 credit for each qualifying disabled dependent.
- Keep copies of all supporting documentation with your tax records.